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)
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