NYK, Yusen Air & Sea look to integrate
Two logistics subsidiaries within Japan's Nippon Yusen Group are in continuing discussions to integrate their operations, the companies said Monday.
NYK Logistics and Yusen Air & Sea Service said they would look to merge their units to take advantage of the relative strengths of the two companies.
'NYK's logistics operations primarily consist of land transportation, warehousing, delivery and ocean freight forwarding services, and that of YAS is centered on air and ocean freight forwarding services,' the companies said in a statement.
The plan is to merge the companies in April 2010, at the start of the Japanese fiscal year, to minimize the impact on the current year's financials. The agreement is to be finalized in February.
'Discussions were held under the mutual recognition that it is essential to drastically explore business strategies beyond the past structure, including reorganization and integration of the logistics businesses within the group,' the statement said. 'As a result, the two companies have reached a conclusion that optimization and streamlining of the group's businesses and maximizing group synergy by reorganization and integration of each other's logistics businesses will contribute to the future growth and to the improvement of corporate value of both companies.'