Panasonic to Take Full Control of Sanyo

Panasonic will spend up to $9.36 billion to take 100 percent ownership of its subsidiaries Sanyo Electric and Panasonic Electric Works to strengthen its position in the growing market for solar cells and rechargeable-batteries for electric and hybrid-electric vehicles.

Last year, Panasonic spent $4.6 billion to secure a controlling stake in Sanyo Electric which is among the top lithium-ion battery makers in the world.

Panasonic Electric Works, 51% owned by the parent company, makes lighting equipment, sensors and other components.

Both units are expected to play key roles in Panasonic's green energy business.

Panasonic also has a joint venture with Toyota Motor Corp. to produce batteries for hybrids and electric vehicles.

Sanyo currently supplies nickel-metal hydride batteries to Honda and Ford for vehicles sold in the North American market and reportedly plans to supply Toyota as well.

Sanyo will also provide its nickel-metal hydride cells for Peugeot 3008 crossover and the Citroen DS5 models which the French carmaker plans to launch in 2011.

The company, which has also agreed on joint lithium-ion battery development with German's Volkswagen AG, is likely to be expanding partnerships with other automakers.

[source: Panasonic]