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Panasonic earlier in the week said it had begun a tender offer to take over rival Sanyo for an estimated $4.4 billion, which would create one of the world's largest electronics companies. But before that can happen, China is forcing Panasonic to sell off assets in Japan if its to approve the deal, the Financial Times reports.
The landmark ruling, which is based on anti-trust laws introduced in August of last year, has some concerned over the growing power of Beijing's competition authorities. Those who study competition law say the Chinese demands go further than those of the European Union and make international companies take greater notice of China when considering acquisitions.
Should the deal go through, Sanyo is expected to become Panasonic's subsidiary by mid-December, or a year after the two companies first announced the potential takeover.
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