Written by Sherry Chin
A fund managed by an affiliate of private equity firm Apollo Global Management has agreed to acquire a majority stake in Panasonic Automotive Systems for an enterprise value of 311 billion yen ($2.05 billion).
Apollo said on Friday that the deal is expected to close by the end of the first quarter of 2025, adding that Panasonic Holdings will retain a minority stake in the auto parts business.
Star Japan Holdings, a new holding company under Apollo, will own all shares of Panasonic Automotive Systems. Panasonic Holdings announced on Friday that it will hold a 20% stake in Star Japan.
Panasonic announced in November that it plans to sell a stake in its auto parts business to Apollo and may seek to take the business public.
Panasonic Automotive develops and sells in-vehicle products such as integrated cockpit systems and in-vehicle electronics.
Given the rapid transition to electric vehicles in the automotive industry, “achieving long-term growth in software development and electrification will require continued investment and further enhancements in the future.” Panasonic said in a statement.
Panasonic said it would be difficult to “invest more management resources in-house,” so it decided to bring in an external partner.
Email Sherry Qin at sherry.qin@wsj.com.
(Ended) Dow Jones News
March 29, 2024 05:49 ET (09:49 GMT)
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