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.
The takeover offer had experienced a delay due to regulatory issues and was commenced in the first week of November. During the takeover process, Sanyo had agreed to sell some of its rechargeable battery operations to ease antitrust concerns in Japan, China, Europe and the U.S. Panasonic is slashing 15,000 jobs and winding down dozens of plants as it tries to bounce back from the global recession. Sanyo has cut thousands of jobs and sold unprofitable businesses as it tries to return to profit. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.