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Forwarders

NYK to Acquire Remaining Stake in Yusen Logistics

NYK to Acquire Remaining Stake in Yusen Logistics
Danny Gill

Japanese shipping and transport company Nippon Yusen Kaisha (NYK) have announced their intention to acquire the remaining 40.4% equity stakes of its freight forwarding subsidiary Yusen Logistics. The transaction is expected to be completed by late March 2018.

NYK currently holds 59.6% equity shares in Yusen Logistics, and in a statement said that the move was part of a strategy to expand beyond its traditional shipping activity and exploit the Group’s technological capabilities.

On their 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.”

“As logistics services have been prominently commodified, the Company believes that improvement of the brand power, as well as the creation of added value and adoption of a differentiation strategy, are required for future business development. Under these operating environments, with a goal of continuously being the world’s preferred supply chain logistics company, the Company formulated in April 2017 its medium- to long-term vision, “TRANSFORM 2025,” which continues until FY2025, aiming to achieve sustainable and profitable growth.”

“In order to realize the improvement of medium- to long-term profitability and competitiveness of the Company and to complete the medium- to long-term vision, “TRANSFORM 2025,” it is necessary to implement radical business reforms such as optimizing the organizational structure and improving the efficiency of the business process, as well as strengthening the Area Themes centered around the freight forwarding business and the logistics business. In addition, in order for the Company to continue developing in the future, investments, such as active investments in the growing business areas and IT investment for strengthening its business foundation, will be essential. The Company believes that, by becoming (NYK’s) wholly-owned subsidiary, it can increase the probability of realizing such measures.”

Forwarders
Danny Gill

Danny is currently a Contributing Writer for Airfreight Logistics and Logistics Manager (LM) and is quite the foodie. He’s always on the hunt for new and exciting dishes to sample, and is never one to back down from a spicy challenge. His travels have taken him around the world, and he’s been able to experience many different cultures (and food).

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