JFE Consider Takeover of Hitachi Zosen Shipbuilding
JFE Holdings Inc. is considering taking over Hitachi Zosen Corp.'s shipbuilding operations, which are now conducted by Universal Shipbuilding Corp., a joint venture between the two firms, sources said Saturday. The deal would mark Osaka-based Hitachi Zosen's effective departure from shipbuilding. It will instead concentrate on its mainline environment equipment and plants business to try to bolster profitability, the sources said. The acquisition is expected to accelerate reconfiguration of the domestic shipbuilding industry. Demand for shipbuilding has increased amid the strong global economy. However, domestic shipbuilders face cutthroat competition with South Korean and Chinese rivals as well as deteriorating profitability due to rising materials costs.
NKK, Kawasaki Tap Top Investment Banks To Negotiate Merger
In order to help negotiate its pending merger with Kawasaki Steel Corp., NKK Corp., has called upon Goldman Sachs Group Inc., while Kawasaki has reportedly hired Morgan Stanley Dean Witter to help with negotiations regarding the possible business transaction. Earlier this year, the same two advisers were hired by Mitsui Chemicals Inc. and Sumitomo Chemical Co. to help negotiate the union of those two businesses, which will form the world's fifth-biggest chemical company. A value for the steel and chemical mergers will be determined when the parties hammer out a ratio for their share swaps, likely to be later this year, the paper said. The transactions are likely to be two of the biggest deals this year. Together they are reportedly valued at as much as $30 billion including debt.
