Deals
JFE, IHI to Merge Shipbuilding Units to Survive Competition
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JFE Holdings Inc., Japan’s second-largest steelmaker, and IHI Corp. agreed to merge their shipbuilding units to create a builder to compete with South Korean and Chinese rivals.
JFE and IHI will each hold 45.93 percent of the merged company while Hitachi Zosen will take 8.15 percent, they said in a statement to the Tokyo Stock Exchange. The units will be combined on Oct. 1 and achieve cost savings of 10 billion yen ($130 million), they said, without providing merger terms.