China is forcing Panasonic to sell off assets in Japan to secure approval for its acquisition of Sanyo Electric, the first time Chinese competition authorities have compelled disposals outside of the country in a monopoly review.

The landmark ruling by China’s commerce ministry clears the way for Panasonic to press ahead with its long-delayed Y805bn ($9.4bn) tender offer to acquire Sanyo Electric, another Japanese company, and create a global battery power house.