Japanese Shippers to Merge Container Operations; Shares Surge

  • Merged entity to create Asia’s second-largest box carrier
  • Nippon Yusen to own 38%, Kawasaki, Mitsui OSK to hold 31% each

3 Japanese Shippers to Merge Container Businesses

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Japan’s three biggest shippers agreed to combine their container operations to create the world’s sixth-largest box carrier, as the industry steps up consolidation this year amid a global turmoil in the sea-cargo business.

Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd., which are predicting operating losses this year, will create a company that will control 7 percent of the world container-shipping trade, according to a joint statement in Tokyo Monday. The combination will need to be approved by regulators in the European Union, U.S., China and Japan among others.