The Gas Review reports that Koike Sanso Kogyo and Taiyo Nippon Sanso have begun negotiations over a comprehensive business tie-up, which would see the establishment of a new company in the cutting & welding field.
Nissan Tanaka, a consolidated subsidiary of Taiyo Nippon Sanso (TNSC), and Koike Sanso Kogyo will combine their departments which handle the development and manufacture of welding and cutting machines, while the deal will also see a mutual holding of capital.
The new venture will be established as of 1st October, with Koike Sanso Kogyo set to acquire Nissan Tanaka stock and TNSC to acquire Koike Sanso Kogyo stock. Finer details such as the capital of the new company and the investment ratio of both parties are yet to be decided, with the management team, number of employees and number of shares to be acquired also still in deliberation.
Competitors with merged interests
Koike Sanso Kogyo and Nissan Tanaka have been competitors in the welding and cutting machines business for some time now, though it should also be noted that TNSC is actually the third largest shareholder in Koike Sanso Kogyo anyway, owning 5.3% of its stock.
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