Printed from http://www.electronista.com

JVC, Kenwood announce merger plans

updated 12:55 pm EDT, Mon May 12, 2008

JVC and Kenwood to merge

Japanese electronics giants JVC and Kenwood have announced plans to merge, Reuters reports. The two companies will come together under a holding company on October 1st, in what they say is an attempt to fight price competition, as well as increasing costs in development. Even together the companies' sales for the financial year ending March 31st would only have been 823.7 billion yen ($8 billion), less than a tenth of those for Panasonic owner Matsushita, which made approximately 9 trillion yen (over $87 billion).

Each JVC share will be exchanged for two shares in the holding company, while each Kenwood share will be worth only one in its new parent. Kenwood chairman Haruo Kawahara will take an identical role in the new company, while JVC president Kunihiko Sato will do the same.

Together the companies hope to raise their operating profit to 39 billion yen in 2011, up from a combined number of 9.6 billion last year. This is expected to be accomplished by eliminating unnecessary duplication in both development and parts procurement.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Patriot Supersonic Rage XT 128GB USB drive

USB thumb drives are getting larger by the day, their growth speeding along with the availability and expansion of memory chips. But h ...

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

Narrative Clip

With the advent of social media technology, people have been searching for new ways to share the events of their daily lives -- be it ...

Sponsor

toggle

Most Commented

 
toggle

Popular News