Kenwood Corp. and Victor Co. of Japan are considering forming a capital tieup as part of their efforts to better deal with increasingly fierce competition in the global consumer electronics industry, sources said Saturday.
If the partnership materializes, it is likely that realignment within the industry will accelerate, the sources said.
Matsushita Electric Industrial Co., which has a 52.4 percent stake in Victor, entered discussions with audio equipment maker Kenwood after Matsushita's three months of talks with U.S. investment fund TPG over the 100 percent sale of Victor effectively broke down in late May, the sources said.