Japanese electronics giant Panasonic has made a strategic move by selling its automotive Business to private equity firm Apollo Global Management. However, it is important to note that this sale specifically refers to Panasonic’s auto parts business and not its electric-vehicle battery division.
On Friday, Panasonic confirmed the sale of Panasonic Automotive Systems to Apollo for approximately $2 billion, with Panasonic retaining a 20% stake in the newly formed venture. This automotive systems segment of Panasonic generates around $10 billion in annual sales, distinct from its Panasonic Energy business, which focuses on supplying EV batteries to companies like Tesla.
The energy business at Panasonic, responsible for producing approximately $6 billion in annual sales, remains a separate entity. Both Panasonic and Apollo have yet to provide further details on the sale.
In a statement, Tetsuji Okamoto, partner and head of Japan at Apollo, expressed excitement about partnering with Panasonic Automotive to drive accelerated growth. With a focus on quality and innovation, Apollo aims to unlock the full potential of Panasonic Automotive with the help of its talented team.
Following this announcement, Panasonic’s shares saw a 0.5% increase in overseas trading, while Apollo’s shares were not actively traded due to the U.S. stock market closure on Friday. As of March, Apollo’s stock had surged almost 21% year-to-date, outperforming the S&P 500’s 9% rise.
This strategic partnership between Panasonic and Apollo reflects a shift in the automotive industry landscape, as companies adapt to changing market demands and technological advancements. As both entities navigate this new chapter, the future looks promising for Panasonic Automotive under Apollo’s ownership.
For more insights and updates on this developing story, reach out to Al Root at allen.root@dowjones.com. Stay tuned for further developments in this evolving market scenario.
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