Panasonic plans to reduce its equity stake in a battery joint venture with Toyota for hybrid vehicles to speed its move to turn Sanyo Electric into a subsidiary, sources close to the matter have said.
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Panasonic believes such a measure, aimed at slashing its share of the global nickel-hydrogen battery market, is necessary to obtain foreign antitrust authorities’ approval of its plan for Sanyo soon, the sources told Kyodo News. Sanyo has a high market share.
Panasonic is expected to cut its equity stake in Panasonic EV Energy (PEVE) to less than 20% from the current 40%, a move that will see the joint venture delisted from Panasonic’s equity method affiliate, the sources said.
The Shizuoka Prefecture-based joint venture, 60% owned by Toyota, makes batteries including nickel-hydrogen cells to power plug-in electric and petrol-electric hybrid vehicles. One factory assembles battery packs used by Toyota’s Prius.
China, which is due to complete its study of the proposed deal between Panasonic and Sanyo by next Tuesday, will likely give them the green light if Panasonic trims its investment in the battery venture, the sources told the news agency.
After it becomes certain that the United States will also approve the plan, Panasonic will proceed to launch a tender offer for Sanyo shares.
In a related development, Sanyo said on Wednesday it would sell two battery-making subsidiaries – Sanyo Energy Twicell and Sanyo Energy Tottori – to FDK, a unit of Fujitsu.
Panasonic’s plan to take over Sanyo has been stalled due to delays in clearing the screenings by competition policy watchdogs in the United States and China on concern about the two firms’ considerable combined presence in the global nickel-hydrogen battery business.
