Forbes: Shareholders of Japanese consumer electronics maker JVC and audio visual equipment maker Kenwood approved at a meeting on Friday a plan to merge the two companies on October 1, the companies said in a joint statement.
The two companies formed a strategic alliance in July last year, when they also agreed to consider merging their operations under a single holding company. Their management teams reached the merger agreement on May 12 this year.
JVC, an affiliate of Panasonic maker Matsushita Electric Industrial, produced Japan’s first television set and was also the pioneer in making VHS video recorders. But JVC has been struggling due to a lack of popular products in the digital consumer electronics market, where price competition is getting fiercer.
JVC President Kunihiko Sato will become president of the merged entity, which will be called JVC Kenwood Holdings.