Panasonic and Sanyo Near $6.4 Bln Deal?

Reports have Panasonic reaching an agreement with most Sanyo investors to pick up most of the company for $6.4 billion...but Sanyo says no deal is yet in place.

Panasonic has been in negotiations to acquire rival consumer electronics manufacturer Sanyo, with momentum picking up back at the beginning of November, with Panasonic reportedly very interested in Sanyo’s businesses in rechargeable batteries and solar power. Now, it appears the acquisition is all but done, with reports indicating Panasonic has completed negotiations with Sanyo’s major shareholders to acquire about 70 percent of SAnyo for ¥560 billion, or about $6.4 billion. The Japanese business newspaper Nikkei reports (subscription required) that Panasonic has worked out a deal with U.S. investment firm Goldman Sachs, and days two other major investors (Daiwa Securities and Sumitomo Mitsui) had already agreed to Panasonic’s offer.

For its part, Sanyo is downplaying the media reports, confirming that it has been in negotiations with Panasonic but noting it has not made an announcement of any kind.

If the deal goes through, it will be the first major realignment in Japan’s electronics industry as a result of the global economic downturn, and it has been enabled by Sanyo’s decision in 2006 to issue several billion dollars in stock to the three key investors Panasonic has been courting in a move to solidify its capital position.