Mitsubishi Heavy Industries and Hitachi Conclude Definitive Agreement on
Business Integration in the Thermal Power Generation Systems Field
Tokyo, June 11, 2013 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd.
(TSE: 7011, "MHI") and Hitachi, Ltd. (TSE: 6501, "Hitachi")
today announced that they have signed a basic integration agreement and a joint
venture agreement in relation to the business integration centered on the
thermal power generation systems.
As announced on November 29, 2012 in a press release titled "Mitsubishi
Heavy Industries and Hitachi Reach a Basic Agreement on Business Integration in
the Thermal Power Generation Systems Field," (the "Announcement on
November 29, 2012"), MHI and Hitachi, on November 29, 2012, agreed to
transfer their respective operations centered on the thermal power generation
systems (the "Integrated Business") by way of company split and other
method to an integrated company, of which equity interest of MHI and Hitachi
will be 65% and 35%, respectively (the "Integrated Company"),
effective on January 1, 2014 (the "Business Integration") and signed
a basic agreement on the same day (the "Basic Agreement").
Today, in accordance with the Basic Agreement, the two companies have signed
the Definitive Agreements, specifying the terms and conditions related to the
Business Integration obtaining approvals of both companies' boards of
directors. The details of Definitive Agreements are outlined below. Preparatory
company for the integrated company (the "Preparatory Company") is
planned to be established in due course, and the details of the Business
Integration will be specified in a company split agreement to be concluded
among MHI, Hitachi and the Preparatory Company around the end of July 2013.
For the full document, please see
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one
of the world's leading heavy machinery manufacturers, with consolidated
sales of 2,820.9 billion for the year ended March 31, 2012. MHI's diverse
lineup of products and services encompasses shipbuilding, power plants,
chemical plants, environmental equipment, steel structures, industrial and
general machinery, aircraft, space rocketry and air-conditioning systems. For
more information, please visit the MHI website at www.mhi.co.jp.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global
electronics company with approximately 320,000 employees worldwide. Fiscal 2011
(ended March 31, 2012) consolidated revenues totaled 9,665 billion yen ($117.8
billion). Hitachi will focus more than ever on the Social Innovation Business,
which includes information and telecommunication systems, power systems,
environmental, industrial and transportation systems, and social and urban
systems, as well as the sophisticated materials and key devices that support
them. For more information on Hitachi, please visit the company's website
Mitsubishi Heavy Industries
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