Panasonic mulling Sanyo buy

November 2, 2008 12:00:00 AM PDT
A union of electronics companies may be in the works in Japan.News reports say Panasonic may buy struggling Sanyo and will soon enter negotiations with major shareholders.

The Nikkei, Japan's largest business paper, and Kyodo News Agency both report a deal may be struck by the end of this year.

Sanyo was rescued in 2006 with a $3 billion investment by Goldman Sachs, Sumitomo Mitsui Banking and Daiwa Securities, which became the company's biggest shareholders.

The cash from a share sale to Panasonic would be helpful to the banks, which are feeling the effects of the global financial slowdown.

A deal would let Panasonic merge Sanyo's large battery operations with its own, as well as gain possession of Sanyo's solar panel business and enter the quickly growing industry.