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JVC, Kenwood Join forces

post #1 of 5
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JVC and Kenwood to merge for cost savings and development resources

JVC and Kenwood yesterday announced the two companies would form a merger of sorts to collaborate on product development and save costs. Both companies are discussing a merger under a holding company, but there is no firm completion date or decision for a new brand at this time.

JVC will issue 35 billion yen, the equivalent of $290 million USD, in new shares for the deal. Kenwood will purchase a 17% stake in JVC for 20 billion yen, the equivalent of $167 million USD. The Sparx Group, Kenwood’s top shareholder, will purchase the remaining 15 billion yen, the equivalent of $125 million USD, for a 12.8% stake.

Under the strategic alliance, both companies will work together on car, home and portable audio electronics, said Shoichiro Eguchi, President, Kenwood USA. The companies will unify management as well, he added.

"A unification of resources offers added value and competitiveness in the market, and we look forward to new opportunities in the consumer electronics markets," Eguchi said.
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post #2 of 5
I've never really used either of them for my audio setups...but they both offer solid stuff. Should be interesting to see how this turns out.
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post #3 of 5
ouch two great companies.. this could either go two ways.. hopefully it's for the better.. Can see some camcorder devices built into your car entertainment to give you some great views and record info.
    
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post #4 of 5
JVC and Kenwood?? This will be a merge I'll be watching closely.
    
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post #5 of 5
I've always liked JVC, and although i've never used kenwood i hear good things. Nice find.
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