Panasonic Deal Shows Beijing’s M&A Clout
Panasonic Corp. said Tuesday it has agreed to sell a battery business to a Chinese company for about 500 million yen ($6.1 million) to comply with a Chinese antitrust ruling, highlighting Beijing’s growing influence over major global M&A deals.
When the Japanese electronics giant took a majority stake in Sanyo Electric Co., a smaller Japanese electronics maker, in December 2009, it had to agree to address Chinese concerns that the combined entity would be too dominant in China’s market for nickel-hydride car batteries.
A Panasonic spokesman said the regulator did not require that Panasonic sell to a Chinese company. Still, the deal structure gives the China-based battery maker that is buying the facilities a new foothold in Japan. Panasonic has already reduced its participation in a car-battery venture with Toyota Motor Corp., also to address Beijing’s concerns.
China is clearly calling the shots!