Japanese electronics giant Panasonic has sold its automotive business to private equity firm Apollo Global Management. That is the auto parts business, not Panasonic's electric vehicle battery business.
On Friday, Panasonic announced it would sell Panasonic Automotive Systems to Apollo for a business value of approximately $2 billion. Panasonic will hold a 20% stake in the new business.
Panasonic's…
Japanese electronics giant Panasonic sells its automotive business to private equity firm Apollo Global Management
.
That is the auto parts business, not Panasonic's electric vehicle battery business.
On Friday, Panasonic announced it would sell Panasonic Automotive Systems to Apollo for a business value of approximately $2 billion. Panasonic will hold a 20% stake in the new business.
Panasonic's automotive systems division generates annual sales of approximately $10 billion. This is not part of the Panasonic Energy business, which is the division that sells EV batteries to Tesla and other companies.
Panasonic's energy business generates annual sales of approximately $6 billion.
Panasonic and Apollo did not immediately respond to requests for comment on additional sales details.
Advertisement – SCROLL TO CONTINUE
“We are pleased to partner with Panasonic Automotive to accelerate the growth of our business,” Tetsuji Okamoto, Partner and Head of Japan at Apollo, said in a news release. “We have great respect for Panasonic Automotive's reputation for quality and innovation, and we look forward to working with the company's talented team to realize its full potential.”
Panasonic shares rose 0.5% in overseas trading. U.S. stock markets were closed on Friday, so Apollo shares were not traded. Through March trading, Apollo shares are up about 21% year-to-date, outpacing the stock price gain of 9%.
S&P500.
Email Al Root at allen.root@dowjones.com.
