Japan's TDK recently announced that it has signed an agreement via its German arm - TDK Germany - with its German competitor Epcos, whereby TDK will consolidate its electronic component business with Epcos to establish a joint venture, tentatively named TDK EP Components KK, Nikkei Electronics reported. Both brand names will continue to exist, though.

Pursuant to the agreement, TDK will pay approximately 200 billion Yen (US$1.8 billion; US$1=109.7 Yen) in cash for a 75% stake in Epcos. Should the process go as planned, the new company will begin operations in the second half of 2009, according to the same source. Products made by the new venture will be sold under the respective brand names of TDK and Epcos. The merger plan is reportedly still awaiting approval in Germany.