CORP TALK: News just came off InformationWeek.com that consumer electronics company Panasonic might be acquiring Sanyo — yes, the same Sanyo which pioneered lithium-ion batteries, is the world’s largest producer of rechargeable batteries and has a commendable solar panel business on the side.

The report follows on with an estimated purchase price hovering at around US$9 billion and a belief that by acquiring Sanyo, Panasonic would be able to enhance its current battery operation.

Panasonic president Fumio Ohtsubo explained Panasonic’s decision at a news conference: “Some people may wonder why we join hands with Sanyo when the economic outlook is this cloudy. I believe we need to take bold steps for growth in the time of drastic changes like this while strengthening our business operations.”

LATEST added on 03/03/09: It seems that the completion of the acquisition won’t happen so soon due to procedural matters which Panasonic has to undertake in Japan, US, China and Europe. Panasonic is reported to be making an announcement a new buyout schedule soon.  (Editor opinions: 2)

HWM Indonesia

HWM Indonesia: The acquisition can be seen more of a synergistic “merger” rather than a typical acquisition. Panasonic’s strength in the consumer electronics and communications fields will definitely receive a boost from similar powerhouse Sanyo.

The additional edge from Sanyo’s alternative energy storage (lithium-ion batteries) and source (solar panel) would bring Panasonic new opportunities, particularly in the portable consumer electronics segment. The possibilities are limitless when it comes to portability. Think about consumer electronic products in portable forms. Think about one-week-play-time iPod. Think about 5-minute recharge time on your mobile phones. As for Sanyo, the blanket-marketing product packaging from Panasonic will bring a lifestyle aura to what I would term as “dull component” products.

Paolo Manzano, Managing Editor, HWM Philippines

Paolo (HWM PH): Obviously, it is a time of consolidation and mergers to strengthen and broaden product portfolio and offerings, especially in a recession where the strong and liquid normally acquire, while the weak and vulnerable are acquired.
 
And if FY2008 has shown us something, it is the fact that energy companies have made the most money, despite the up and down trends of petrol and oil prices. In this sense and coupled with the ‘greening’ of companies and the world in general, alternative power sources will be a big draw for companies wishing to make a big leap in the next few years. The benefits of this acquisition may not be felt at the moment, but it will surely manifest itself in the next five years.

After all, Sanyo’s batteries and energy portfolio is something significant that Panasonic can leverage upon to fuel its growth and portfolio in the next few years. If the other giants such as Sony and Samsung see the benefits of integrating such technologies and products in their portfolio to generate other business or complement their existing offerings, they definitely would.
 
At the end of the day, the big money generating businesses in the next few years should fall under the alternative energy and communications businesses. In a global economy and threatened world, these are the keys to the conglomerates of the future.