Kawai Musical Instruments Manufacturing Co., Ltd. (TSE:7952) plans merger of musical instruments units with two phases. As phase one, company's Shizuoka-based 55% owned unit plans to merge with company's 85.7% owned unit Diapason via stock swap, and unit Diapason will be dissolved after transaction. One share of unit Diapason's stock will be exchanged with 455.74 shares of company's Shizuoka-based 55% owned unit's stock, and 5.47 million shares of Nippon company's Shizuoka-based 55% owned unit's stock will be exchanged. As phase two, the company will merge the surviving unit after phase one merger, and the surviving unit will be dissolved after transaction. The transaction will be effective on June 1.