Japanese shipping company Mitsui O.S.K. Lines (MOL) has signed a capital and business alliance agreement with compatriot liquid cargo logistics provider Nippon Concept Corporation (NCC).
As informed, the objective of the agreement is to develop a “comprehensive two-way strategic partnership” including both partners’ group companies and to enhance their businesses.
The new business alliance will cover the share of overseas and business networks, joint business and service operations, joint technology research and development, joint purchasing, proactive use of both companies’ services and exchange of personnel, among other matters, MOL said in a statement.
Through this partnership, MOL said it will get an opportunity to expand into the liquid chemical product transport business.
In addition, NCC will be able to globally increase its name recognition and enhance its competitiveness by integrating MOL Group companies’ overseas networks with its existing networks, according to MOL.
The companies will also discuss other issues of mutual benefits.
The move is part of MOL’s strategy to select and invest in new business fields that can bring advantages to the company. Some of the fields in which it strategically allocates human resources and investment include chemical tanker and logistics. At the same time, MOL is promoting a study on entering the tank container business.
Under the terms of the agreement, NCC plans to accept one full-time director and one part-time director from MOL on its board of directors. MOL plans to acquire 15% of NCC’s issued shares through the acquisition of its issued shares and subscription to new shares issued through a third-party allocation by NCC.