Panasonic boosts Sanyo, subsidiary holdings

TOKYO: Panasonic said on Thursday that it had completed tender offers to raise its holdings in subsidiaries Sanyo and Panasonic Electric Works to more than 80 percent as it looks to more fully embrace green energy.

The Japanese electronics giant will seek to further raise its stakes in the two units to 100 percent, it said.

Panasonic now aims to shift its focus from home electronics -- which faces increasing competition and shrinking margins -- to the fast-growing and lucrative renewable energy and energy conservation business.

In December it secured a controlling stake in its smaller rival Sanyo, in a deal that revamped Japan's troubled electronics industry.

By doing so, Panasonic gained access to Sanyo's coveted environmental technologies such as rechargeable batteries -- seen as a promising sector given growing concerns about global warming.

Subsidiary Panasonic Electric Works makes lighting equipment, sensors and other key components for energy efficient homes and offices.

Its stake in Sanyo is now at 81 percent and 84 percent in Panasonic Electric Works. The company also decided against a plan to issue around 500 billion yen in new shares initially planned to fund the stake-building.

In July Panasonic announced an 818.4 billion yen (9.88 billion dollar) plan to buy up the remaining shares of both companies.