Onkyo, TEAC In Cross-Ownership Deal

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 Tokyo - Onkyo and TEAC announced a strategic alliance in which they will acquire shares of each other's stock and explore ways to share manufacturing facilities, logistic centers and research and development efforts.

The announcement follows Gibson Guitar's announcement that it will purchase  a 51 percent stake in Onkyo USA and become the second largest shareholder of Onkyo Corp. in Japan.  Onkyo USA is the parent company's exclusive distributor for North America and a distributor for Central and South America.  Onkyo will also invest in Gibson.

TEAC president Yuji Hanabusa said the Onkyo-TEAC alliance "will make both companies more competitive in an ever changing market." Onkyo president Munenori Otsuki said the deal will enable both companies to "leverage each other's considerable strengths to provide innovative life changing products to its customers."

Nikkei reported that Onkyo will purchase a 10 percent interest in Teac for about 1 billion yen on Feb. 6, and TEAC will buy about 700 million yen worth of new shares in Onkyo to obtain a stake of about 10 percent.

TEAC, founded in 1953, markets the TEAC, TASCAM and Esoteric brands.


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