NYK TO ACQUIRE REST OF TSK, RESTRUCTURE INTRA-ASIA BUSINESS
NYK said it will acquire the remaining shares of Tokyo Senpaku Kaisha Ltd. and will consolidate its intra-Asia container transportation business with the new wholly owned subsidiary.
NYK, which owns 39.23 percent of TSK's shares, will acquire the remaining shares by August. TSK is expected to take over NYK's intra-Asia container transportation business — including the West Asia trade — in October.
The actions will result in improving NYK's efficiency, not only in the intra-Asian trade, but in its global container business as well, the carrier said. Savings will come through integration of services, fleet management, information technology and other restructuring.
NYK anticipates the moves will improve the carrier's profitability by Yen 1.5 billion ($11 million) per year.
The moves follow other recent corporate restructuring, including spin-off of NYK's reefer trade business, integration of conventional trade and the establishment of a new shipmanagement company in Singapore. More recently, NYK announced the integration of its handy bulker business, which will be completed in October. Combined, the moves are expected to improve profitability by more than Yen 3 billion ($22 million) per year, NYK said.