Panasonic Delays Sanyo Deal

Electronics maker is postponing the public tender offer to buy smaller Japanese rival Sanyo due to legal process in the U.S. and other countries.

TOKYO (AP) -- Panasonic is postponing the public tender offer to buy smaller Japanese electronics rival Sanyo due to legal process in the U.S. and other countries, delaying a deal that would make the combined entity one of the world's biggest electronics companies.

Panasonic announced in December that it has begun $9 billion takeover of Sanyo Electric Co. The two companies have said they planned to start the tender offer soon for all shares of Sanyo, with hopes of completing the deal by February.

But Friday, Panasonic and Sanyo said preparations to start the tender offer are yet to be completed, and that the timing of the launch will be announced "around late April."

"Pursuant to domestic and foreign competition laws and regulations, all procedures in Japan, the U.S., Europe, China and other countries required for the launch of the tender offer are in progress," the two companies said in a joint statement.

The deal would allow Panasonic, which makes Viera TVs and Diga Blu-ray disc players, to take advantage of struggling Sanyo's green businesses in solar panels and rechargeable batteries.

Sanyo, founded by a brother-in-law of Panasonic founder Konosuke Matsushita, is a popular brand but has struggled to keep pace with bigger rivals in Japan's competitive electronics sector.

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