Onkyo and Pioneer look set to join forces and form a "capital/business alliance" in the AV world, according to a brief statement released by the two companies today.
"Pioneer Corporation, Onkyo Corporation and Baring Private Equity Asia have reached a basic agreement to commence discussions with an eye to integrating a part of Home AV business operations between Pioneer and Onkyo", the statement read.
"Both companies will retain their existing brands, and increase their corporate value," according to the announcement.
Today's statement didn't give much away, though we're told that more details should emerge later this week. Pioneer's Dolby Atmos event on Wednesday could perhaps see some clarification.
The statement continued, "A portion of shares in Pioneer Home Electronics Corporation, a wholly-owned subsidiary of Pioneer, will be transferred to Baring and Onkyo.
"After the transfer, Baring will have 51% stake in PHE. The remaining 49% will be determined in consultation between the related parties."
Changes in the wider AV market and a shift from analogue to digital equipment were also cited as reasons for the companies to adapt and, it seems, join forces.
"Pioneer and Onkyo will make an effort to increase competitiveness by capitalizing on the resources of the two companies such as strong brand power and superior technologies.
"Also, the capital participation of Baring will maximize synergies including business expansion." That's enough corporate jargon for today...
The news sent Pioneer shares up 4 per cent and shares in Onkyo surged as much as 12.6 per cent
The three parties aim to close the deal by the end of August, said a Tokyo-based spokesman for Baring Private Equity, as reported by Reuters.
We will endeavour to find out more details on the deal and what it means for the future of Onkyo and Pioneer AV products in due course.
by Joe Cox