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JFE, IHI to Begin Talks Possible Shipbuilding Merger
Tuesday, April 08, 2008
Japanese heavy machinery makers IHI Corp. and JFE Holdings Inc. said they have agreed to begin concrete talks on merging their shipbuilding subsidiaries, a move that would create Japan's biggest shipbuilder.
The move comes as Japanese shipbuilders face intensifying competition from regional rivals South Korea and China, the International Tribune reported.
IHI and JFE will establish a committee to discuss the details of how operations of IHI subsidiary, IHI Marine United Inc., and its JFE counterpart, Universal Shipbuilding Corp., can be integrated, the companies said in a joint statement.
They will also discuss production details, merger ratios and ways to stay competitive in shipbuilding operations, they said.
JFE, which operates a wide range of engineering business, including steel manufacturing, boosted its stake in Universal Shipbuilding last year to 85 percent by buying a 35 percent stake from shipbuilder Hitachi Zosen Corp.
Source: International Tribune
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