Panasonic Announces Stake Divestiture in Automotive Business to Apollo Global Funds

Japanese electronics giant Panasonic Holdings has announced plans to sell a stake in its automotive systems business to funds managed by U.S. private equity firm Apollo Global Management. This news has caused shares of Panasonic to surge, ending 5.5% higher in Tokyo trade.

Under the memorandum of understanding signed with an Apollo affiliate, the parties will continue discussions on an exclusive basis with the intention of finalizing the details of the agreement by March 31, 2024. Additionally, Panasonic has indicated that it could potentially list the business in the future.

The company emphasized the need for continued investment in the automotive systems business to achieve sustained growth, especially in light of a rapid shift to electric cars and changes to vehicle architecture. The automotive unit manufactures cockpit and electronics systems, and is separate from Panasonic’s energy unit that makes batteries for electric vehicles, including those from Tesla.

This agreement with Apollo Global Management marks a significant development for Panasonic’s automotive systems business and reflects the company’s commitment to adapt to changes in the automotive industry.

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