Japan's JVC and Kenwood announced on May 12 that the two companies have come to an agreement to combine their operations under a holding company named JVC Kenwood Holding, to be effective as of October 1, 2008, Nikkei Electronics reported.

The merger deal followed Kenwood's purchase of a 30% stake in JVC in August 2007. According to the Nikkei report, the new company is expected to streamline the two companies' existing businesses and focus on selected areas including automotive electronics, home and mobile electronics, professional systems, and entertainment segments. In addition, a fifth core business integrating high-level image, audio and wireless technologies will be created to incorporate operations that do not fit in the present business demarcation.