Japanese shipbuilder Imabari Shipbuilding Co is planning to buy its compatriot Minaminippon Shipbuilding Co.
The deal, reached with the shipbuilder’s shareholders Mitsui Engineering & Shipbuilding Co, which holds 25 pct ownership stake in the company, and Mitsui O.S.K. Lines, which holds 24 ownership stake, is in an initial stage.
“The concerned parties will hold further discussions to conclude the final agreement required for succession of the business,” a joint press release reads.
Imabari added that it estimates it would close the acquisition effective April 1, 2018.
Minaminippon Shipbuilding has a construction and a repair dock and its product portfolio includes construction of car carriers, container ships, chemical and product tankers and bulk carriers.
The move comes on the back of a major industry slump in the shipbuilding sector and fierce competition Japanese builders are facing from their South Korean and Chinese counterparts.
These trends have seen the Japanese shipbuilders bolster their ties and consolidate their assets so as to battle the storm in the market.