Panasonic's tender offer for Sanyo faces delays
PANASONIC Corp.'s tender offer for Sanyo Electric Co. is on hold till May or later.
Sanyo's conversion into a Panasonic subsidiary will be delayed, the companies have confirmed because the firms are working to comply with anti-trust regulations in 11 countries and regions where Sanyo operates.
It is because Panasonic's rechargeable battery operations after the Sanyo acquisition will have a high market share, that the review process under U.S. anti-trust law is still ongoing.
In a joint statement Sanyo and Panasonic said:
'Pursuant to domestic and foreign competition laws and regulations, all procedures in Japan, the U.S., Europe, China and other countries required for the launch of the tender offer are in progress, including responses to the request for additional information (second request) which Panasonic and Sanyo received in the U.S'.
It added 'The tender offer is scheduled to be launched as soon as practicable following the completion of necessary procedures and measures under domestic and foreign competition laws and regulations'.
The companies said that by the end of April, they will have an update on the progress made on compliance with regulations and a date for the launch of the tender offer.