Panasonic buying Sanyo and other unit for $9.4 billion
Japan's Panasonic Corp plans to buy out subsidiaries Sanyo Electric and Panasonic Electric Works for up to 818.4 billion yen ($9.4 billion) to strengthen its push into greener businesses. The world's No.4 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 percent. 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. Panasonic said making the two subsidiaries wholly-owned would allow it to more effectively allocate management resources across the group as well as speed up decision making amid growing competition from overseas rivals.
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