November 2 - Shipping line Nippon Yusen Kaisha (NYK) is set to take over its third-party logistics affiliate, Yusen Logistics.
Already the controlling shareholder of Yusen (59.6 percent), Tokyo, Japan-based NYK, led by its president Tadaaki Naito, will acquire the remaining 40.4 percent of shares for a reported JPY1,500 (USD13.17) per share, or a total JPY25.6 billion (USD22.47 million).
Yusen said its board of directors recommended the move that will see the firm become a wholly-owned subsidiary of NYK, when it takes full ownership in March 2018.
Commenting on its plans for Yusen and the rationale behind the acquisition, NYK said it had: "set the logistics business as its core business, and, in order to strengthen its business foundation, has been engaged in expanding the logistical services centred around growing industries and emerging markets and strengthening its marketing capabilities utilising the group's management foundation."
The company said it was "shifting to a light-asset model for the business that operates under highly volatile conditions," and that, "as logistics services have been prominently commodified, the company believes that improvement of the brand power, as well as the creation of added value and adoption of a differentiation strategy, are required for future business development."