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Two Japanese electronics giants have merged with the news that Panasonic will buy Sanyo.

When we first reported this story, the outcome was in doubt. Three investment banks, two Japanese and one American, had to sign off. The American one, Goldman Sachs, was holding out for a better deal.

In its final form, the deal will have Panasonic buy Sanyo shares for 131 yen each, totaling more than 560 billion yen. Depending on whose story you read (exchange rates vary) that's somewhere between $1.49-2.12 per share, totaling well in excess of $6 billion.

The merger will give Panasonic a stronger presence in the battery business, including batteries for future electric cars. That two companies of such size are merging is also being viewed as a symptom of recent worldwide economic troubles.

The downturn has forced Sony to lay off 8000 employees plus another 8000 contract employees. Sony, of course, won't be on the block anytime soon. But the Panasonic/Sanyo merger may be only the first move in a series of mergers and consolidations in the consumer electronics industry.

See Australian newspaper report.