Tokyo – JVC and Kenwood said Wednesday they will soon finalize a previously reported agreement to establish a new holding firm that merges together several disparate business operations, according to reports from Japan.
The integration agreement, which has been in discussion between JVC and Kenwood executives since last year, is expected to be detailed in a formal announcement on Monday.
The holding company and three separate operations under it will merge into one business by Oct. 1.
The new company will continue production using the JVC and Kenwood brand names.
Business units under the holding company will include: Victor Co. of Japan Ltd. (JVC); car electronics maker J&K Car Electronics Corp.; and Kenwood Corp., which makes home audio and communications equipment.
Kenwood chairman Haruo Kawahara will reportedly named the chairman of the new holding company and JVC president Kunihiko Sato will be president.
Current Kenwood president Kazuo Shiohata will remain with the company under the new structure, and Hidetoshi Yoshida, a 51-year-old board director, will be promoted to the post of president of JVC, reports said.