Japan’s largest shipbuilding group announced an increase in its stake in Japan’s second largest shipbuilding company.
On June 26, Imabari Shipbuilding announced on its official website that it had signed an equity transfer agreement with JFE Holdings and IHI Corporation to acquire part of the equity of Japan Marine United (JMU) held by JFE Holdings and IHI Corporation, thereby obtaining majority control of the shipbuilding company. This move is subject to approval by relevant authorities in Japan and overseas.
After the transaction is completed, the shareholding ratios of Imabari Shipbuilding, JFE Holdings and IHI Corporation in Japan Marine United will be adjusted from the current 30%, 35% and 35% to 60%, 20% and 20%.
Imabari Shipbuilding said that the equity transfer will not result in any changes to Nihon Shipyard’s business content, investment ratio, etc.
It is reported that Nihon Shipyard is a joint venture shipyard established in January 2021 by Imabari Shipbuilding (51%) and Japan Marine United (49%) with the aim of designing and selling commercial ships other than LNG carriers, thereby enhancing the international competitiveness of the two shipbuilding companies in the commercial ship business.
Imabari Shipbuilding pointed out in the announcement: “Due to the rise of Chinese and Korean competitors, the market share of Japan’s shipbuilding industry has dropped significantly. In addition, the advantageous technologies of Japan’s shipbuilding industry are also facing fierce catch-up from China and South Korea. Imabari Shipbuilding and Japan Marine United will further leverage their respective advantages to compete with Chinese and Korean shipbuilders, and make faster and more comprehensive decisions at the operational level to help the development of Japan’s shipbuilding industry.”
According to the official website, Japan Marine United is the second largest shipbuilding company in Japan after Imabari Shipyard. It has seven shipbuilding bases, namely Ariake Shipyard; Kure Shipyard; Tsu Shipyard; Maizuru Shipyard; Yokohama Shipyard Isogo Works; Yokohama Shipyard Tsurumi Works; Innoshima Shipyard, and a technology research and development center.