A man walks past a signboard of Kawasaki Heavy Industries, Ltd. at the company’s Tokyo Head Office in Tokyo April 22, 2013. Image (c) REUTERS/Toru Hanai(Bloomberg) — Mitsui Engineering & Shipbuilding Co. surged to 5 1/2-year high on a Nikkei report it plans to hold merger talks with Kawasaki Heavy Industries Ltd. to create Japan’s second-biggest heavy machinery maker.
Shares of Mitsui Engineering soared as much as 21 percent to 204 yen, the biggest intraday gain since Oct. 30, 2008, while Kawasaki Heavy rose 3.6 percent to 345 yen. The two companies aim to complete a merger in the financial year starting April 2015, the Nikkei newspaper reported without citing anyone.
Japanese manufacturers are under pressure to merge as they face sluggish local demand and intensifying competition with South Korean and Chinese rivals. Kawasaki Heavy and Mitsui Engineering would have combined annual sales of 1.9 trillion yen ($19 billion), behind only Mitsubishi Heavy Industries Ltd. among Japanese makers of heavy machinery makers, data compiled by Bloomberg show.
Kawasaki Heavy said earlier today that there’s no truth to the Nikkei report in a statement filed to the Tokyo Stock Exchange, while Mitsui Engineering said that it’s not the source of the article.
Mitsubishi Heavy and Hitachi Ltd. said last year they plan to combine energy-equipment businesses by January 2014, deepening ties between two Japan’s biggest industrial manufacturers. Nippon Steel & Sumitomo Metal Corp., the world’s second-biggest steelmaker, was formed by a domestic merger in October to become more competitive with rivals in China and South Korea.
Kawasaki Heavy, based in the western port city of Kobe, was founded as a shipbuilder in 1878. The company has become one of Japan’s top three makers of heavy machinery and produces everything from submarines for Japan’s self defense forces and high-speed trains to Ninja racing bikes.
Mitsui Engineering, founded in 1917 as the shipbuilding arm of Mitsui & Co., is most dependent of ship operations among heavy industry makers with sales accounting for half of the total.
– Shigeru Sato and Monami Yui, Copyright 2013 Bloomberg.
By David Shepardson WASHINGTON, March 3 (Reuters) – The U.S. Justice Department declined to investigate or prosecute then-Transportation Secretary Elaine Chao after the inspector general’s office referred allegations of potential...
By Yuka Obayashi (Reuters) – Kawasaki Heavy Industries expects shipment of its first cargo of liquefied hydrogen from Australia to Japan could be delayed until the summer due to the pandemic,...
Defense contractor Leidos (NYSE: LDOS) has announced a definitive agreement to acquire U.S.-based naval architecture firm Gibbs & Cox for $380 million in cash. The acquisition was revealed this week...
February 25, 2021
Total Views: 2727
Sign Up Now for gCaptain Daily
Just enter your email and get hot news every morning
We use cookies on our website to give you the most relevant experience. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.