TOKYO (Reuters) - Japanese consumer electronics makers Victor Company of Japan Ltd (JVC) (6792.T) and Funai Electric Co Ltd (6839.OS) will jointly develop and supply LCD television sets, an industry source said on Tuesday.
The news pushed up shares of both companies, with Funai rising nearly 8 percent at one point.
Bigger rivals such as Sharp Corp (6753.T) have been forming similar alliances in the LCD business, where competition is intensifying.
JVC will supply LCD TVs made at a plant in Mexico to Funai, which will sell them under its own brand in North America, while JVC will market LCD TVs in Europe produced by a Funai plant in Poland, the source said.
The two plan to release a jointly developed LCD TV in 2009, the source added.
Funai spokesman Naoyuki Takanaka said his firm was in talks with JVC on a possible alliance but nothing had been decided. JVC spokesman Toshiya Ogata said nothing had been set.
Funai sells a large portion of its products in the United States through Wal-Mart Stores Inc (WMT.N) under the Emerson brand. Business with the U.S. retail giant accounts for roughly one-third of Funai's total sales.
JVC is set to integrate with Kenwood Corp (6765.T) after Kenwood and asset manager Sparx Group (8739.Q) in August acquired a combined 30 percent stake in JVC, taking the loss-making unit off the consolidated accounts of Matsushita Electric Industrial Co Ltd (6752.T).
Among other tie-ups in the industry, Toshiba Corp (6502.T) agreed in December to procure large LCDs from Sharp, which in turn will buy chips for LCD TVs from Toshiba.
Panasonic maker Matsushita plans to take a majority stake in an LCD making joint venture with Hitachi Ltd (6501.T), and Toshiba and will shoulder the bulk of the cost of a 300 billion yen LCD panel plant planned by the venture.
JVC shares ended the morning session up 5.3 percent at 180 yen and Funai rose 5.9 percent to 4,110 yen, both outperforming a 1.8 percent gain in the benchmark Nikkei average (.N225).
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