Panasonic Holdings announced on the 17th that it has reached a basic agreement to sell Automotive Systems, an in-vehicle parts company under its umbrella, to a group company of U.S. investment fund Apollo Global Management. The photo is the Panasonic logo. Photographed in 2017. (2023 Reuters/Kim Kyung-Hoon)
TOKYO (Reuters) – Panasonic Holdings (6752.T) announced on the 17th that it will sell Automotive Systems, an automotive parts company under its umbrella, to a fund (corrected) that will be provided with investment advice by U.S. investment fund Apollo Global Management. announced that they had reached a basic agreement.
As a result of the sale, Automotive Systems is expected to change from a wholly owned subsidiary to an equity method company. Discussions will be held with the aim of reaching a formal contract by the end of March 2024.
As the rapid transition to electric vehicles requires continued investment, the joint partnership agreement with Apollo will provide large-scale new financing opportunities, and the company is also considering a future stock listing. It is assumed that the current business structure will be maintained, and there are no plans to sell any part of the business.
Automotive Systems’ sales for the fiscal year ended March 2023 were 1,297.5 billion yen. The business sale is part of Panasonic HD’s review of its business portfolio.
(The title and first paragraph of the main text have been corrected from “Apollo group companies” to “funds for which Apollo provides investment advice”)
Miho Uranaka Editor: Shiho Tanaka
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