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UPDATE 1-China OKs Panasonic's Sanyo buy, seeks JV stake cut

Published 10/30/2009, 12:23 PM
Updated 10/30/2009, 12:27 PM
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* China gives anti-trust clearances with conditions

* Calls for Panasonic to cut stake in Toyota battery JV

* Only U.S. approval left before tender offer (Adds details on Toyota joint venture; background)

SHANGHAI, Oct 30 (Reuters) - China on Friday granted Panasonic Corp anti-monopoly clearance to buy Sanyo Electric Co Ltd subject to conditions, including cutting its stake in a battery venture with Toyota Motor Corp.

China's ministry of commerce called on Panasonic to cut its stake in Panasonic EV Energy Co Ltd, a venture with the world's biggest automaker that produces batteries for hybrid electric vehicles, to 19.5 percent from 40 percent.

The ministry noted in a statement on its website that the venture held a 77 percent share of the market for automotive nickel-metal hydride batteries and warned that Panasonic's purchase of its Japanese rival would further reduce the number of competitors in the market.

Sanyo provides nickel-metal hydride batteries for hybrid cars made by Honda and Ford.

Chinese regulators have recently been flexing their anti-monopoly muscles in deals by global firms, blocking Coca-Cola Co's proposed purchase of China Huiyuan Juice in March and placing conditions on their approval of InBev's acquisition of Anheuser-Busch.

Panasonic said last December it would spend at least 400 billion yen ($4.4 billion) to take control of Sanyo Electric, the world's largest rechargeable battery maker, and has been seeking approval from anti-monopoly regulators worldwide.

After receiving approval from the EU, Japan and others, Panasonic, which vies with Sony Corp for the title of the world's largest consumer electronics maker, was still awaiting the green light from China and the United States before launching a tender offer for Sanyo. ($1=90.97 Yen) (Reporting by Edmund Klamann; Additional reporting by Kiyoshi Takenaka in Tokyo; Editing by David Cowell)

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