Hitachi, Sagawa Express said to form tie up, consider merger
[TOKYO] Hitachi Ltd's transportation unit and Japanese logistics company Sagawa Express Co will tie up their distribution businesses and consider a possible merger, according to two people familiar with the situation.
Hitachi will sell about 30 per cent stake in Hitachi Transport System Ltd to SG Holdings Co, the owner of Sagawa, said one person, who asked not to be identified because a final decision hasn't been made.
Closely-held SG Holdings will sell about 20 per cent of Sagawa to Hitachi Transport, said the other person, who asked not to be identified as the information isn't public.
Sagawa, Japan's second-largest courier service, and Hitachi will both hold separate board meetings Wednesday and announce their decisions at a press conference later in the day, the two people said. The Nikkei reported the tie-up and a possible merger earlier today.
Hitachi Transport rose as much as 10 per cent to 1,997 yen and traded at 1,941 yen as of 11:05 am in Tokyo. Hitachi fell 2.2 per cent to 531.6 yen as the Nikkei 225 Stock Average declined 0.3 per cent.
Hitachi will hold a board meeting today to discuss transferring Hitachi Transport shares to SG Holdings, the company said in an e-mailed statement Wednesday. SG said they are not the source of today's report and they will make any announcements in a timely manner, according to a statement on their website Wednesday.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Chinese share of French EV market slumps after incentives curbed
Ferrari unveils US$423,000 sports car with 1960s bloodline
Airbus called for compensation to take on money-losing Spirit operations: sources
China’s electric cars keep improving, a worry for rivals elsewhere
Air Canada reports bigger loss than market expectations as costs rise
Maersk raises full-year profit guidance after strong quarter