Panasonic Holdings announced on Friday its decision to sell its entire stake in Panasonic Automotive Systems (PAS) to funds managed by the U.S. private equity titan, Apollo Global Management (NYSE:APO)

This deal, valued at an enterprise total of 311 billion yen (approximately $2.06 billion), is poised for closure by the end of the first quarter of 2025, according to Apollo's official statement.

In a concurrent move to maintain its foothold in the automotive sector, Panasonic will acquire a 20% stake in Star Japan Holdings, the future parent company of PAS.

This acquisition ensures that the automotive business will continue its strategic alliance with the broader Panasonic Group, highlighting the ongoing relationship between the two entities despite the divestiture.

Apollo's acquisition of PAS underscores a strategic expansion for both parties, with Panasonic hinting at the possibility of PAS being listed as a public entity in the future, signaling ongoing confidence in the automotive business's growth potential and market value.

Additionally, Panasonic has unveiled plans for its subsidiary, Blue Yonder, to expand its digital supply chain capabilities by acquiring One Network Enterprises, a U.S.-based digital supply chain network supplier, for $839 million.

This acquisition, expected to be finalized in the July-September quarter of 2024, marks Panasonic's continued investment in enhancing its global supply chain solutions.