| JVC, Kenwood to Merge |
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| Monday, 12 May 2008 08:01 | |||
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TOKYO – Consumer electronics makers Victor Co. of Japan (JVC) and Kenwood Corp. plan to merge under one holding company on Oct. 1 to curb a pricing war. Under terms of the agreement, investors will receive two shares in the holding company for each JVC share held, and one share for each Kenwood share held. No other financial terms were disclosed. JVC president Kunihiko Sato will become president of the new company, called JVC Kenwood Holdings. The decision to unite follows an alliance between the two companies last summer. JVC, an affiliate of Panasonic, made Japan's first TV and pioneered VHS, but lately has been struggling. Last month, JVC said it would halt domestic production of flat-panel TVs. The merged firm will focus on electronics for auto, home/mobile, professional-use wireless systems and entertainment. The companies had combined operating profits of 9.6 billion yen and revenues of 823.7 billion yen in the fiscal year ended in March. ($1 = 103.64 yen)
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| Last Updated on Monday, 12 May 2008 08:01 |
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