Osaka, Japan — Kenwood has agreed to merge with Victor Co. of Japan (JVC), under a holding company in 2008, according to a Nikkei report Friday.
Kenwood had informed JVC parent Matsushita Electric Industrial Co. Friday that it would agree to a proposal for a merger with the struggling subsidiary, according to the report.
Details have yet to be decided by the three companies, which will seek a final agreement by the end of next month, Nikkei reported.
Under the plan, Kenwood will buy 20 billion yen ($161,469,466) in JVC shares as early as this summer, raising its stake to 13 percent, Nikkei said.
The report said Matsushita will sell a portion of its 52.7 percent interest in JVC to Kenwood’s top shareholder, investment firm Sparx Group.
When JVC and Kenwood integrate operations under the holding company in 2008, Matsushita will sell the rest of its JVC shares to the holding company to complete the transaction. The holding company's stock will be listed instead of Kenwood and JVC, according Nikkei.
Combined group sales at the two companies reached 910 billion yen ($7,346,767,192) for the year ended March 31.
The only statement from JVC officials Monday was that nothing has been decided concerning the deal. Matsushita officials declined to comment and Kenwood executives did not respond to queries for comment as this was posted.