Audio Video News

Panasonic is making a bid to purchase Sanyo. The move would not only make one of Japan's leading consumer electronics giants even bigger--it might also lead to a dominant position in batteries, a fast growing segment of the industry.

Sanyo has traditionally had a varied portfolio in consumer electronics. But starting three years ago, it began to sell off non-core business to focus more intensely on batteries. If the deal with Panasonic goes through, the combined company would benefit from an expected growth spurt in the lithium ion batteries used in laptops, cameras, music players, and games. It would have a good shot at the manufacture of batteries for future generations of electric cars. And it would have some depth in photovoltaics--the solar energy field.

All eyes are now on Goldman Sachs and the two Japanese banks that own Sanyo. The deal, if it happens, would not be consummated till next spring at the earliest.

Sanyo Electric was founded after World War II by the brother-in-law of Panasonic's founder and has made a variety of products, initially bike lamps, washing machines, and portable radios. It later expanded its repertoire to include a/v products like Beta VCRs and HD DVD players as well as non-a/v products like cell phones and microprocessors. It also has some involvement in Blu-ray, having recently announced a new blue laser diode that would quadruple disc capacity.

Panasonic recently adopted its brand name as its corporate name. Before that the company had been named Matsushita Electric, after its distinguished founder, Konosuke Matsushita.

See story in Britain's Times Online.

Update: On Nov. 7, the two companies made an official announcement stating they are in negotiations, and hope to close the deal by year-end.