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Panasonic is already a sizable company, but they are going to get that little bit bigger with the confirmed takeover of Sanyo.  Sanyo have been struggling recently, and it’s probably not a coincidence that their downturn coincides with the economic crisis that we are facing.  Nevertheless, they are still worth a substantial $18.5 billion which will boost Panasonic’s value to around $107.8 billion, making it one of the biggest consumer electronics companies.

The reason behind this is that this takeover will give Panasonic access to two key technologies in the shape of solar panels and batteries which will help them greatly in their own hand-held electronic products, in fact, Sanyo is the market leader in the manufacture of rechargeable batteries.  They will also acquire a company specializing in portable gadgets which generates $4 billion per annum in revenue.

This is the first major buy-out in the crowded Japanese market; although, considering the way the economy is going, it probably will not be the last.  Having said that, many companies have adamantly said that they will do everything possible to avoid being taken over: Pioneer is an example.  Who knows what will happen regarding companies like Sony and Toshiba, as they may either conserve their valuable money, or choose to mop up the struggling companies to make their empire larger to keep up with Panasonic.

Although this is not 100% definite, it is very likely which could prove disastrous for European and American companies as the Japanese companies grow and grow, meaning they may be able to out muscle the western companies out of the market.  It may also be bad news for current Sanyo customers, as it is likely that their customer service may be in a mess for a few months (although from my experience it may be hard to get any worse!). 

Source [BusinessWeek]