Japan's third largest shipbuilder, Kawasaki Heavy Industries Ltd is considering merging with another firm to thin out the number of Japanese firms playing in a crowded field.
According to Senior Executive Vice President Mitsutoshi Takao in an interview with reporters in Tokyo, "In the future, a merger is one option to consider given that there are too many companies in this industry." In the same interview, Takao had reported that net income may increase by 10% for the fiscal year. This is still well below market analyst estimates on future earnings of the firm.
Last April 22, the daily newspaper Nikkei reported that Kawasaki was in discussion with Mitsui Engineering and Shipbuilding Co for a merger. According to Takao, no talks or discussions have transpired and a merger was not in the agenda discussed at the company board of directors meeting.
Aside from increasing competitive pressure from China and South Korea, many Japanese firms have also felt the weight of the yen's recent value increases, making doing business much more costlier than ever.
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