Panasonic is to increase its shares in battery and solar panel firm Sanyo from 50 to 80 percent in efforts to enhance its green technology business.
The company is also planning to buy out shares in its other subsidiary, Panasonic Electric, where it currently owns 51 percent of the stock. It will increase this to 84 percent, giving it a significantly higher majority share and more say in how the company is run.
Panasonic also plans to buy the rest of both companies, stating that full ownership of Sanyo will be completed by the end of March 2011. It did not give a timeframe for Panasonic Electric, but indicated that it will secure full control of the company by swapping shares of Panasonic with current Panasonic Electric shareholders.
The deal will cost in the region of 818.4 billion Japanese Yen ($9.8 billion), which adds to the $4.6 billion deal it secured with Sanyo in December of 2009, when it became a majority shareholder. It has been negotiating today’s deal from late August until now.
The acquisitions will see current shareholders gain 138 Yen per share for Sanyo and 1,110 Yen per share of Panasonic Electric.