Japanese shipping and transport company NYK is to acquire the remaining 41% stake of its freight forwarding subsidiary, Yusen Logistics, from minority shareholders. The transaction is expected to be completed by late March, 2018.
In a statement, NYK said the move was part of its strategy to expand beyond its traditional shipping activity and exploit the Group’s technological capabilities.
NYK Group envisages establishing two main pillars of business, namely air and ocean freight forwarding, and contract logistics, to meet demands by its global customers for total logistics solutions.
It would deepen the collaboration of each business and strengthen sales capabilities, promote collaboration through the common use of information, technology and systems and increase investment by sharing NYK’s financial strength and creditworthiness.
On its website, a Yusen statement said: "Recently, since securing cargo space for air freight forwarding in Asia has become difficult due to factors such as increased passenger demand, preferential treatment of passengers by governments and downsizing of aircrafts, reliably securing cargo space has become important for ensuring future profitability.
"Furthermore, global logistics providers are actively consolidating through mergers and acquisitions to enhance profitability and competitiveness. Under the global operating environment, competition with the Company’s competitors is expected to intensify not only with respect to business conditions, market conditions and customer trends but also with respect to securing purchasing power and cargo space."
