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Panasonic Holdings of Japan announced its decision to divest its entire stake in Panasonic Automotive Systems (PAS) to funds managed by Apollo Global Management, a U.S. private equity firm.
The transaction, valued at 311 billion yen ($2.06 billion), is expected to conclude by the end of the first quarter of 2025.
Additionally, Panasonic will acquire a 20% stake in Star Japan Holdings, PAS’s new parent company, ensuring the continuation of strategic ties between the automotive business and Panasonic Group.
Details of the Transaction:
Panasonic’s sale of its stake in PAS to Apollo Global Management is part of a strategic move to realign its portfolio.
While Panasonic will exit its ownership in PAS, it will have a minority stake in the new parent company, demonstrating a commitment to the continued success of the automotive business.
The deal is subject to adjustments and regulatory approvals before its expected completion in 2025.
Future Prospects:
Panasonic has indicated the possibility of listing PAS as a separate entity in the future, suggesting potential growth opportunities for the automotive business under new ownership.
The strategic relationship between Panasonic Group and PAS is expected to be maintained even after the transaction, ensuring continuity in operations and collaboration.
Expansion in Digital Supply Chain:
In a separate development, Panasonic’s subsidiary Blue Yonder announced its acquisition of One Network Enterprises, a U.S.-based digital supply chain network supplier, for $839 million.
This acquisition, slated for completion in the July-September quarter of 2024, reflects Panasonic’s commitment to expanding its presence in the digital supply chain domain.
