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Panasonic to spend $9.4b on buying out Sanyo and PEW shares, posts robust quarterly profits
Clearly dissatisfied with what it sees in the mirror, Panasonic has today announced its decision to bulk up. A new share issue expected to raise ¥500 billion ($5.7 billion) will be enacted soon as part of raising the cash to complete the buyout of Sanyo Electric and Panasonic Electric Works. Don't ask us why a company named Panasonic has to buy another company with Panasonic in its name, but them's the facts. The total outlay is expected to come in at around $9.4 billion and is justified by Panasonic as fundamental to its future strategy of expanding into environmentally friendly tech and developing a three-pronged operating paradigm by 2012. The Osaka-based company is also reporting a ¥43.7b ($498 million) profit for the last quarter -- a major upswing from a ¥53b loss in the same period last year -- though that's information the market seems to have ignored. Panasonic shares have plunged down 7.7% in the immediate aftermath of the acquisitions being announced, while Sanyo's have shot up. Click past the break for the novella-sized press release explaining the details of the deal.
