Pioneer, Onkyo to Integrate
The parent companies of Pioneer and Onkyo this week announced that they have "executed a basic agreement" to integrate Pioneer’s Home AV business, phone business and headphone-related business, with Onkyo.
The deal follows the June announcement that the companies, along with Baring Private Equity Asia, would team up to integrate a part of the Home AV businesses of Pioneer and Onkyo.
"The three parties, however, ceased discussions as they decided that the Home AV business needs to be considered from a long-term perspective as the business must be developed strategically and flexibly to quickly respond to the continuously changing business environment," the companies said in the statement Friday. "The three parties therefore agreed that it would be more efficient for the two strategic parties, Pioneer and Onkyo to directly discuss the Integration without financial sponsor."
The deal essentially means that Onkyo will take over Pioneer's Home AV business, while Pioneer takes a stake in Onkyo.
"Pioneer and Onkyo will mutually and effectively utilize their advantages in resources such as brand power and the-best-of-its-kind technologies, and thereby improve cost competitiveness and maximize synergies. Each brand continues to stay in the market after the planned transaction. "