Apollo to Acquire Majority Stake in Panasonic's Auto-Parts Business
By Sherry Qin
Funds managed by affiliates of private-equity firm Apollo Global Management have agreed to acquire a majority stake in Panasonic Automotive Systems for an enterprise value of 311 billion yen ($2.05 billion).
The transaction is expected to be completed by the end of the first quarter of 2025, Apollo said Friday, adding that Panasonic Holdings will retain a minority stake in the auto-parts business.
A new holding company under Apollo's management, Star Japan Holdings, will hold all shares in Panasonic Automotive Systems. Panasonic Holdings will hold a 20% stake in Star Japan, it said Friday.
In November, Panasonic said it had planned to sell a stake in the auto-parts business to Apollo and would potentially seek a listing of the business.
Panasonic Automotive develops and sells automotive products, such as integrated cockpit systems and in-vehicle electronics.
Given the rapid shift to electric vehicles in the automotive industry, "continuous investment will be necessary to achieve long-term growth in software development and electrification, which will require further enhancement in the future," Panasonic said in a statement.
As it is difficult to "invest further management resources on its own," Panasonic decided to bring in an external partner, it added.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 29, 2024 05:49 ET (09:49 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What Does Nvidia’s Stock Split Mean for Investors?
-
5 Undervalued Stocks to Buy as Their Stories Play Out
-
Markets Brief: Return of the Meme Stocks
-
What’s Happening In the Markets This Week
-
It’s Been a Terrible Time for Bonds. Here’s Why You Should Own Them
-
Which AI Stocks Are Turning Hype Into Revenue?
-
Best- and Worst-Performing Stocks of May 2024
-
3 Stocks to Buy and 3 Stocks to Sell in June
-
Adobe’s Strong Quarterly Results Drive Share Gains
-
What Does Broadcom’s Stock Split Mean for Investors?
-
5 Ultracheap Stocks to Buy With the Best Returns on Investment
-
Broadcom Earnings: AI Sales Growth Accelerates
-
Oracle Earnings: IaaS Signings More Than Make Up for Miss
-
This Undervalued Stock Is a Buy After Its Dividend Increase
-
After Earnings, Is Nio Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Lululemon Stock a Buy, a Sell, or Fairly Valued?