The joint venture currently has 85 of the market

The merger between two Japanese electronics Giants is running. Panasonic and Sanyo confirmed last weekend, having initiated the discussions leading to their reconciliation. "While the situation is very difficult, we felt needed us a further pillar to ensure our growth," said Fumio Ohtsubo, President and CEO of Panasonic, at a press conference. The consumer electronics group, already heavily committed in televisions flat screen, domestic appliances, semiconductors, or equipment for the automotive, sees in Sanyo "best ally" as possible to its development.

At the end of a painful restructuring, Sanyo brings a complementarity of activity with such rechargeable batteries and photovoltaic cells. It also has serious references in industrial refrigeration and air purification.

The new group, which should display a turnover accumulated more of 11,000 billion yen (90 billion euros) is not simply displaced Hitachi, currently number one electronics, or lagging behind Sony. It will especially address to at the outset of the strong positions, including in the universe of the batteries. Together, Panasonic and Sanyo should have a market share of 30 on the market for rechargeable batteries against 18 for the competitor Samsung SDI, according to David Gibson, analyst of Macquarie. However, the strategy of the new pole has yet to define.

And fears that the new entity lead to reshuffle the cards of existing partnerships or to generate a new concentration are real. "If Panasonic and Sanyo merge, they will be necessarily more strong", felt a few days more early Mitsuo Kinoshita, Vice President of Toyota. Panasonic is engaged since 1996 alongside Toyota in a joint venture for the production of batteries for hybrid vehicles. The joint venture currently has 85 of the market. Sanyo, for its part, is the champion of the rechargeable lithium-ion batteries widely used in consumer electronic products and in the car tomorrow. In this field, Sanyo has signed with Volkswagen to develop a new generation of batteries for mass production. They équiperont the first Audi at the end of 2009. Sanyo has planned to invest 195 billion yen in three years to strengthen both in rechargeable batteries as well as in those to solar energy. Investments are up to the issues since, according to calculations by JP Morgan, sales of hybrid cars should explode until 2018 to 9.62 million units (i.e. 19 times the volume of 2007) and inflict severe competition at Toyota whose market share is expected to increase from 80 to 30 in the world.

For Honda, which currently provides Panasonic and Sanyo, it is him also very cautious. "We do feel not very at ease in our relations with Panasonic", note a leader of Honda. "All manufacturers look to the Magnifier emerge the new giant", says an expert in the sector.

The questions for the time being are lifted as fusion does that start, even if the buyer wants to move quickly and complete the operation in the second half of the year. At the end of a friendly takeover bid, Panasonic wants to raise "at least the majority of the capital" of Sanyo, according to its CEO, and reportedly in talks with the three major shareholders (Goldman Sachs, Sumitomo Mitsui Banking Corp. and Daiwa Securities) which had flown to the rescue of Sanyo in 2006. Rest for the two groups to agree on the price of the transaction. A "project team" common to Panasonic and Sanyo will be incorporated. A it to address the part of the financial negotiations.