Panasonic has begun a $9 billion takeover of Japanese rival Sanyo, hoping that transforming into one of the world's biggest electronics companies will help it weather the toughest business conditions in a century. Top shareholders, including Goldman Sachs, had been haggling over the price with Panasonic since last month, but settled today on $1.47 a share, reports the AP.
The deal would also allow Panasonic, which makes Viera TVs and Diga Blu-ray disc players, to take advantage of struggling Sanyo's green businesses in solar panels and rechargeable batteries. A stronger Japanese currency, rising raw material costs and declining gadget prices hurt earnings, with Sanyo's quarterly profit shrinking by two thirds year-on-year. (More Panasonic stories.)