Updated March 29th, 2024 at 14:50 IST

Panasonic to offload entire stake in auto business to Apollo Global

The transaction, valued at a total enterprise of 311 billion yen ($2.06 billion), is expected to be finalised by the end of the first quarter of 2025.

Reported by: Business Desk
Panasonic Automotive | Image:Panasonic Automotive
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Japan's Panasonic Holdings announced on Friday its decision to divest its entire stake in Panasonic Automotive Systems (PAS) to funds managed by US private equity firm Apollo Global Management.

The transaction, valued at a total enterprise of 311 billion yen ($2.06 billion), is expected to be finalised by the end of the first quarter of 2025, subject to customary adjustments at closing, as stated by Apollo in a press release.

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As part of the deal, Panasonic will also acquire a 20 per cent stake in Star Japan Holdings, the entity set to become the new parent company of PAS. Notably, the automotive business will maintain its strategic relationship with Panasonic Group, according to Apollo's statement.

While Panasonic has hinted at the possibility of listing the business in the future, the sale underscores the company's broader strategic realignment efforts.

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In a separate announcement, Panasonic disclosed its subsidiary Blue Yonder's plans to acquire US-based digital supply chain network supplier One Network Enterprises for $839 million. The acquisition, slated to be completed in the July-September quarter of 2024, aligns with Panasonic's broader vision of enhancing its digital capabilities and expanding its presence in the supply chain domain.

(With Reuters inputs)
 

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Published March 29th, 2024 at 14:50 IST