Tokyo-based Mitsui O.S.K. Lines, (MOL) and compatriot logistics company Nippon Concept Corporation (NCC) announced the conclusion of a capital and business alliance agreement, with the objective of developing a comprehensive two-way strategic partnership including both partners’ group companies, and steadily enhancing their businesses.
For example, the agreement gives NCC the opportunity to globally increase its name recognition and enhance its competitiveness by integrating MOL Group companies’ overseas networks with its existing networks.
For MOL, it will be an opportunity to expand business in liquid chemical product transport business, which requires considerable expertise and has the potential to generate stable profits.
Both companies are confident that the agreement will facilitate those business opportunities. The companies will also continue discussions on other issues that will mutually benefit them as they build a partnership that will maximize corporate value for both partners.
NCC plans to accept one full-time director and one part-time director from MOL on its board of directors upon the resolution of the general meeting of shareholders. MOL plans to acquire 15% of NCC’s issued shares in total through acquisition of its issued shares and subscription to new shares issued through a third-party allocation by NCC.
More specifically, the business alliance between MOL and NCC covers the following issues:
- Share overseas networks and business networks
- Joint business and service operations
- Joint technology research and development
- Joint purchasing
- Proactive use of both companies’ services
- Personnel exchange
- Other beneficial matters to enhance the businesses of both companies
