Panasonic Buys Sanyo for $4.6 Billion

NEW YORK (TheStreet) -- Panasonic(PC) has completed the acquisition of a majority stake in smaller, ailing competitor Sanyo(SANYY).

The completion of the 50.2% stake in Sanyo has created one of the top providers of batteries for fuel efficient cars. Together, Panasonic and Sanyo's battery businesses generated ¥745.8 billion, or about $8.4 billion in sales last year.

Panasonic purchased its stake in Sanyo for £2.8 billion or $4.6 billion, offering 131 yen or about $1.50 for each common Sanyo share bought, generating a significant profit for its three primary shareholders: Goldman Sachs(GS), Daiwa Securitiesand Sumitomo Mitsui.

Panasonic first announced its interest in pursuing Sanyo 13 months ago, mostly enticed by Sanyo's hybrid car battery operations, say analysts, a strong suit for both companies.

Currently Panasonic and Toyota(TM) are joint venture partners in making hybrid car batteries for Toyota's Prius model, while Sanyo makes hybrid car batteries for Honda(HMC), Ford(F) and Peugeot Citroen.