Pioneer, Matsushita merge plasma display biz

Japanese firms Pioneer Corp. and Matsushita Electric Industrial Co. Ltd have agreed on a plasma panel display (PDP) business alliance, a move that is seen as an effort to cope with the intense price war in the flat TV market.

The deal is part of Pioneer's efforts to save its troubled PDP business. The company will no longer make plasma panels and will instead buy from Matsushita, the company behind the Panasonic brand. Matsushita, in turn, will have access to Pioneer's KURO technologies, known for high luminance efficiency, high contrast and super-slim design.

The companies are expected to formally conclude the agreement in May.