April 27, 2008

Rumor: Matsushita May Be Merging With Sanyo, Trading Suspended In Japan

Rumors has it that trading of both Matsushita and Sanyo shares have been suspended on both the Tokyo and Osaka Stock Exchanges after newspaper Yomiuri Shimbun reported that the two companies are considering a "possible capital and business tie-up". The possible merger is apparently an option Sanyo is considering to turnaround its struggling business, quite apparent after the company was investigated for cooking the books near the end of 2007.

How would this affect the two companies' respective TV businesses? Sanyo could definitely augment the Panasonic HDTV line, bringing its respectable global market share over to Matsushita, who in return would give Sanyo the backing it'll need to turnaround its overall business.

So far the problem right now is to figure out exactly whether this rumor is true or not. Both companies have denied they've ever discussed such a move and trading is set to resume on both Stock Exchanges tomorrow morning.