Victor Co. of Japan Ltd. and Kenwood Corp. officially announced Monday the details of their planned merger, saying they will unite under a holding company called JVC Kenwood Holdings Inc. on Oct. 1.
Shareholders of Victor will receive two shares of the new company for each Victor share while one share in the new firm will be allocated for each Kenwood share, the companies said.
Leading audio equipment maker Victor is better known overseas under the JVC brand.
Victor President Kunihiko Sato will assume the holding firm's presidency, while Kenwood Chairman Haruo Kawahara will become its chairman.
JVC Kenwood Holdings, to be based in Victor's current headquarters in Yokohama, will aim for sales of ¥830 billion in the business year ending in March 2011.
For business 2007 that ended March 31, Victor reported sales of ¥658.45 billion while Kenwood recorded sales of ¥165.26 billion.
Victor said last July 24 that it and Kenwood had agreed to integrate their managements and that they were holding talks on what corporate structure they would adopt in tandem with the envisioned integration.
The two have since enhanced their capital and business tieups in preparation for the integration.