Panasonic Corp. is poised to conclude its acquisition of Sanyo Electric Co. this week for an undisclosed sum, according to media reports from Japan.
The acquisition would create a $110 billion giant. Sanyo has had a reputation for producing outstanding products, but the firm has suffered financially and the company has had to sell off units in recent months to maintain its business life. Earlier this year it sold its cell phone business to Kyocera for $375 million.
The Associated Press reported that officials of the two firms have agreed to permit Sanyo to keep its name as a subsidiary that would keep its employment intact. While Sanyo produces a wide range of electronic and electric-based products, its chief businesses are focused on lithium-ion batteries and solar panels.
Sanyo's founding family has resisted attempts to sell the company in the past and it dragged its feet for months before the Kyocera deal was consummated in January. Earlier Kyocera had purchased cell phone technology assets from Qualcomm that enabled it to become a major wireless force in Japan and to become more aggressive in foreign markets.
Sanyo and Panasonic board directors are reportedly planning to finalize the deal later this week.
Goldman Sachs Group participated in the acquisition negotiations alongside Japan's Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC Co. in a rare involvement of a non-Japanese investment banking operation, according to the Wall Street Journal. The acquisition calls for the creation of a company with substantial U.S. investments and operations. In global revenues it would rival Hitachi Ltd., which records more than $110 billion in annual sales.