European Union antitrust regulators have given conditional approval to Panasonic's planned acquisition of Sanyo Electric Co Ltd. The body approves of the deal as long as the company sheds certain units to uphold competition. The European Commission released a statement saying that Panasonic would need to sell battery production facilities in some markets where competition concerns were identified.
"In view of the remedies offered, I am satisfied that competition will remain vigorous after the merger and that purchasers of batteries will continue to benefit from choice and competitive prices," EU Competition Commissioner Neelie Kroes said.
"Without some unit sales, the merged entity would have a significant market share in batteries used in alarms and utility meters, portable rechargeable nickel-metal hydride batteries and rechargeable coin shape batteries based on lithium," the Commission statement reads.
"The companies will sell a battery production factory and one of the parties' portable nickel-metal hydride businesses to eliminate any increase in market share in this product market." Panasonic announced its plan to buy Sanyo in December 2008 once it jumps hurdles in several markets in the world including the EU, United States and China.
The European Commission looked at consumer electronics markets such as camcorders and plat panel televisions and didn't find any significant market share gains would come from the merger.
"Without some unit sales, the merged entity would have a significant market share in batteries used in alarms and utility meters, portable rechargeable nickel-metal hydride batteries and rechargeable coin shape batteries based on lithium," the Commission statement reads.
"The companies will sell a battery production factory and one of the parties' portable nickel-metal hydride businesses to eliminate any increase in market share in this product market." Panasonic announced its plan to buy Sanyo in December 2008 once it jumps hurdles in several markets in the world including the EU, United States and China.
The European Commission looked at consumer electronics markets such as camcorders and plat panel televisions and didn't find any significant market share gains would come from the merger.
