JVC, Kenwood to form holding company: sources
TOKYO (Reuters) - Japanese mid-sized electronics makers JVC (6792.T: Quote, Profile, Research) and Kenwood Corp (6765.T: Quote, Profile, Research) have agreed to integrate their businesses under a holding company in October, sources close to the matter said on Saturday.
Kenwood and asset manager Sparx Group (8739.Q: Quote, Profile, Research) acquired a combined 30 percent stake in loss-making JVC for 35 billion yen ($340 million) last year, and Kenwood and JVC have been in talks with eyes on merging their operations under a holding company.
Victor Co of Japan Ltd (JVC) President Kunihiko Sato is set to become president of the holding company and Kenwood Chairman Haruo Kawahara is slated to become chairman of the new organization, the sources said.
JVC last month posted a net loss for the fourth straight year due to fierce price competition, while Kenwood is scheduled to report its earnings results for the year ended March 31 on Monday.
(Reporting by Kentaro Hamada; Editing by Michael Urquhart)
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