Nov. 4, 2009 (The Yomiuri Shimbun) -- JVC Kenwood Holdings, Inc. (OOTC:JVCZF) is in talks with Hoya Corp. over the possible acquisition of its digital camera division, known for the Pentax brand, it was learned Wednesday.
The holding company of the Victor Company of Japan Ltd. and Kenwood Corp., JVC Kenwood is planning to utilize the video camera technology accumulated by Victor to move into the field of digital cameras. It hopes to reach an agreement with Hoya, a leading producer of optical glass, as early as this month.
Aiming to restructure its operations, JVC Kenwood also is in talks to sell Victor's music software division. It means to use the profits from that sale to strengthen its product lineup in the field of imaging devices, which it has deemed a growth area.
Victor holds 20 percent of the global market for video cameras, the second-largest share in the world after the 40 percent held by Sony Corp. (NYSE:SNE) However, the market is almost completely saturated, and prices are falling at an increasing pace.
JVC Holdings decided that entering the field of digital cameras--which has much in common with that of video cameras, including lens and image-processing technology--would help expand the company's operations.
A growing number of digital cameras contain video-recording functions that have been improved in recent months, and Canon Inc. (NYSE:CAJ) , Sony and Panasonic Corp. (NYSE:PC) already are involved in both areas.
JVC Holdings appears to feel that if Victor also expands its array of digital camera products, it will strengthen the company's entire brand of imaging devices.
Hoya acquired Pentax Corp. in 2007 and succeeded in the initial goal behind the purchase--to strengthen its medical-related business of endoscopes and other products. However, Hoya's digital camera division shipped only about 2 million units in fiscal 2008, not even making the domestic top 10.
The company has decided to withdraw from digital cameras, which have shown little synergy with the rest of its business, and concentrate managerial resources on its areas of expertise, such as optical lenses.
