It's Official: JVC and Kenwood Merge
By Mark Fleischmann May 16, 2008 — Last summer we reported that JVC and Kenwood were contemplating a merger. It appears the merger is about to become official, pending a June 27 shareholder meeting. The new company will be called JVC Kenwood Holdings Inc.

The two companies had already merged their car and portable audio divisions as J&K Technologies in October 2007. Now they'll go all the way, intending to "grow the car electronics business into a strong profit center and increase profitability of the home audio business by expanding the role of J&K Technologies to general procurement and manufacturing." All this is occurring in the face of intense competition from southeastern Asian manufacturers.

Home and mobile electronics are expected to provide the new company with 43 percent of its sales over the coming fiscal year, followed by car electronics at 18 percent, professional systems at 14 percent, and entertainment business at 9 percent, in addition to a possible fifth division involving a/v wireless networking. The two companies will exchange their old stock for new stock, with JVC receiving two new shares for each old share, and Kenwood receiving one for one.