OSAKA -- Four consumer electronics retailers, including Joshin Denki Co., said Wednesday they have reached a basic agreement to tie up.
The companies said they will improve customer satisfaction by combining their management resources for product development and purchasing.
While the agreement covers product planning, development and purchases, details of the cooperation will be worked out by a joint committee to be set up by the companies, they said.
In addition to Joshin, the accord involves Deodeo Corp., Eiden Co. and Midori Denka Co.
Joshin is based in Osaka, Deodeo in Hiroshima, Eiden in Nagoya and Midori in Amagasaki, Hyogo Prefecture.
The latest deal includes a capital tieup accord between Joshin, Deodeo and Eiden, all of which are listed on the first section of the Tokyo Stock Exchange.
Deodeo will acquire up to 700,000 shares, or 1.3 percent of all issued shares, in Joshin, while Eiden will buy up to 300,000 Joshin shares. Joshin will reciprocate with purchases equivalent to the value of shares bought by the two firms.
In the 2000 business year, which ended in March, Joshin chalked up consolidated sales of 273.84 billion yen, while Deodeo's consolidated sales were 247.10 billion yen and Eiden's were 199.99 million yen.
Midori, which is unlisted, chalked up 181.20 billion yen in group sales in the business year through February.