Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves Panasonic’s application to sell assets used to manufacture sub-C NiMH batteries, (Jul 16, 2015)

By Michael Menzhuber, J.D., LL.M.

Panasonic Corporation’s application to sell assets to FDK Corporation, from its facility in Suzhou, China that produces sub-C portable nickel metal hydride (NiMH) batteries, has been approved by the FTC. Panasonic had been required, pursuant to a FTC November 2009 order which settled charges that its $9 billion acquisition of Sanyo Electric Co., Ltd. was anticompetitive, to: (1) divest a battery production plant in Takasaki, Japan to FDK; (2) supply FDK with sub-C and D NiMH batteries, which are not produced at the Takasaki plant, from its Suzhou plant; and (3) obtain FTC approval for a sale of its Suzhou NiMH assets to FDK. The sale of the Suzhou NiMH assets to FDK means that the supply agreement will terminate because FDK will be able to produce the sub-C NiMH batteries on its own, according to the FTC.

The commission vote to approve the sale, which followed a public comment period, was 5-0.

Companies: Panasonic Corporation; FDK Corporation; Sanyo Electric Co., Ltd.

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