Mitsubishi Heavy to Buy Defense Ministry Ship Biz of Mitsui E&S

Economy

Tokyo, March 29 (Jiji Press)--Mitsubishi Heavy Industries Ltd. <7011> said Monday that it has clinched a final agreement to acquire Mitsui E&S Shipbuilding Co.'s operations of constructing Defense Ministry ships, including Self-Defense Forces vessels.

Mitsubishi Heavy will also take over Mitsui E&S Shipbuilding's business for other public-sector ships, such as patrol boats of the Japan Coast Guard. The two companies are aiming to complete the business transfer in October. The value of the deal is estimated to be billions of yen.

The two companies reached a basic agreement on the business transfer in June last year.

The move will make Mitsubishi Heavy and Japan Marine United Corp. the only builders of SDF destroyers. Japan Marine United is partly owned by major Japanese steelmaking and engineering group JFE Holdings Inc. <5411> and major Japanese heavy machinery maker IHI Corp. <7013>. Mitsubishi Heavy and Kawasaki Heavy Industries Ltd. <7012> are already the only companies that build SDF submarines.

"By taking over the technologies and human resources of Mitsui E&S Shipbuilding, we aim to strengthen our SDF ship business and further contributing to Japan's maritime security," Mitsubishi Heavy President Seiji Izumisawa told a press conference in Tokyo.

[Copyright The Jiji Press, Ltd.]

Jiji Press