JVC and Kenwood Will Merge, Says Report

June 22, 2007 - After months of speculation, followed by months of failed negotiations with other agencies, JVC and Kenwood have officially agreed to merge under a holding company in 2008, according to  Nikkei report. JVC, or Victor Company of Japan, has been under the control of Matsushita Electric Industrial Co. (trade name Panasonic) since the 1950s.

According to the reported plan, Kenwood will purchase 20 billion yen (approx. $161M) worth of JVC shares to gain a 13% share in the company. Kenwood's top sharehold, the Sparx Group, will then purchase a portion of Matsushita's 52% holding in the company.

When contacted, the official comment from Victor Company of Japan was: "Nothing has been decided yet."

The sale follows on the heels of a failed negotiation with the Texas Pacific Group, an American private equity firm. The Kenwood deal, if official, may add some much needed stability to the company's stock. JVC share prices plunged to a 5-year low earlier this month when talks with Kenwood began.