Mitsui Engineering and Shipbuilding Co and Kawasaki Heavy Industries Ltd are to begin merger discussions. This merger if completed may result in the second largest heavy machinery manufacturers in terms of sales in Japan.
The planned merger was reported in the business daily Nikkei. The first order of business would be the merger format as well as other details. The goal is to complete the merger as early as the next financial year. The two Japanese conglomerates have engaged the services of financial advisers as well as banks to assist in the deal. No other details were provided in the news report.
The information was provided to Nikkei by individuals familiar with the plan who spoke on condition of anonymity.
With the merger, the new company would have 2 trillion yen or nearly US$20 billion in annual sales. This figure makes the new company second only to Mitsubishin Heavy Industries Ltd in Japan.
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