Japanese electronic giant, Panasonic Corporation said it would not be able to reveal details or schedule for its planned takeover of Sanyo Electric, the world's largest manufacturer of rechargeable batteries, before late April.

Panasonic planned to make Sanyo a subsidiary by the end of March through a public tender offer, following the conclusion of the capital and business alliance agreement announced by Panasonic on 19 December, 2008.

The statement from the company suggests that the deal may face regulatory hurdles globally.

Panasonic was all set to buy Sanyo shares via the tender offer from the US investment bank Goldman Sachs and Japanese banking firms Sumitomo Mitsui Banking Corp and Daiwa Securities, as well as individual shareholders (See: Panasonic looking to acquire Sanyo to create Japan's largest electronics company) </industry/electronics_cons/20081108_panasonic.html>

''The tender offer is scheduled to be launched as soon as practicable following the completion of necessary procedures and measures under domestic and foreign competition laws and regulations'', a company statement said.

''Pursuant to domestic and foreign competition laws and regulations, all procedures in Japan, the US, Europe, China and other countries required for the launch of the tender offer are in progress. Update on further progress will be announced around late April 2009'', it added.

Regulators are discussing whether a Japanese electronics mega-manufacturer with annual sales of $111.7 billion would be good for the market and consumers.

The deal, estimated at about $9 billion, would have formed a consumer electronic behemoth. It would have given Panasonic 70.5 per cent stake in Sanyo. Panasonic expects the acquisition to boost its operating profit by $820 million in FY12.

In December in a joint statement, Panasonic and Sanyo said that the companies had to take 'drastic action' to spur revenue and growth in the midst of the financial crisis and intensifying global competition.

Panasonic said at that time it would spend up to $8.1 billion to take control of Sanyo, to take advantage of struggling Sanyo's green businesses in solar panels and rechargeable batteries.

''Panasonic and Sanyo believe that together they will evolve into a corporate group which will be highly admired globally" including by ''coexisting in harmony with the global environment,'' they said.

Sanyo, which started off making bicycle lamps after World War II, has recently tried to focus on environmental technologies including solar panels and rechargable batteries. Its businesses cover a broad range of multimedia and information systems, home appliances, commercial equipment, electronic devices, batteries and other products.

However, impacted by global economic crisis, Sanyo struggles to maintain profitability and its sales plummeted in the last several quarters. In January, Sanyo cut its net profit forecast to zero, from $359.3 million, for the fiscal year ending March 2009. In 2008, Sanyo sold some of its units to Kyocera for $375 million.

Since coughing up $2.6 billion for Sanyo way back in January 2006 in a bailout of the company, Goldman Sachs, Daiwa Securities SMBC and Sumitomo Mitsui Banking have pushed the company to reform its businesses.

A  Japanese daily last month reported that Sanyo Electric is thinking of culling 500 of its 20,000 regular employees in Japan.

The jobs will go mostly in its semiconductor division and will happen by the end of March, the daily said.

Panasonic's president, Fumio Ohtsubo, has been on the hunt for deals ever since he took over in mid-2006. From the start, he has stressed his intention of dipping into Panasonic's $6.7 billion war chest if it means scooping up key technology that will help the company grow faster than it can alone.

Panasonic, a global leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs, recorded consolidated net sales of US$90.7 billion for the year ended March 31, 2008.

Shares of Panasonic closed up 1.4 per cent at 1,154 yen on the Tokyo Stock Exchange , while Sanyo shares closed unchanged at 139 yen.