EC approves Kenwood-JVC merger
Published: 21 Aug 2008 14:18 BST
The European Commission has approved a proposed merger between electronics manufacturers Kenwood and JVC.
The Commission found that under EU merger regulations, the merger of the Japanese electronics giants "would not significantly impede effective competition in the European Economic Area".
The combination of Kenwood's focus on communications equipment, car and home electronics with JVC's product range, which includes computer-related electronics, was found to be acceptable by the Commission.
"The Commission's examination of the proposed transaction showed that the horizontal overlaps between the activities of Kenwood and JVC are limited in most markets, that the new entity would continue to face several significant competitors in the markets for car electronics, home electronics and mobile electronics, and that customers would continue to have access to a sufficient number of alternative suppliers," stated the Commission on Wednesday.
Kenwood and JVC announced the merger in May, following increased competition in their respective market segments.
"In recent years, the consumer electronics industry has witnessed the appearance of new rivals in such countries as South Korea, Taiwan and China, and increasingly fierce battles over market share and heightened price competition in the global market," Kenwood said in May.
Neither company had responded to a request for comment at the time of writing.
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