Japan’s Panasonic Corp plans to buy out subsidiaries Sanyo Electric and Panasonic Electric Works for up to $9.4 billion to strengthen its push into greener businesses. The world’s number four flat TV maker will raise up to 500 billion yen in a new share issue to help finance the buyouts, sending its shares down as much as 11 per cent.
Under President Fumio Ohtsubo, Panasonic has been shifting away from low-margin home electronics products and investing more aggressively in solar cells, batteries and other energy-related areas which offer promising growth prospects. “The cost may not be small, but I think investors will welcome the deal as Panasonic can boost its rapidly growing environment-related business,” said Okasan Securities analyst Kazumasa Kubota.
http://www.business-standard.com/india/news/panasonic-to-buy-sanyo-another-unit-for-94-bn/402892/