Well the rumours were right. Hitachi Construction Machinery Co., the
world’s largest maker of giant excavators, and Nissan Motor Co. agreed to merge
their forklift operations next year to cut costs and expand in Asia.
The venture will be operated by government-backed Innovation
Network Corp. of Japan, which will invest 30 billion yen ($386 million) and hold
a majority stake, the three companies said today in a statement. Hitachi
Construction Machinery and Nissan will own the remaining shares, according to
the statement, which didn’t provide more details.
The partners will seek to expand in Southeast Asia and other
emerging markets that drive global demand, the companies said. Japanese
forklift-truck producers have been battered by price competition in the domestic
market, dominated by Toyota Industries Corp., an affiliate of Toyota Motor
Corp., a person familiar with the deal said last month.
“Many Japanese forklift manufacturers do not have sufficient
scale to gain market share, even with their technological prowess,” according to
the statement. Mergers, acquisitions and restructuring are “vital for them to
capture business in new, growing markets,” it said.
Hitachi Construction Machinery, which has lost 30 percent of its
value this year, closed up 1.7 percent at 1,353 yen on the Tokyo Stock Exchange.
Nissan Motor shares gained 2.7 percent to 693 yen.
Hitachi Construction Machinery, Japan’s second-largest maker of
excavators and wheel loaders, took control of TCM Corp., a forklift maker, in
2005 and acquired all the shares it didn’t already own in the company in
December 2009.
Nissan Forklift Co., a wholly owned unit of Japan’s second-
largest carmaker, produces 30,000 forklifts a year in Japan, Europe and the
U.S., according to its website.
The automaker is scaling back businesses outside its main
vehicle division as Chief Executive Officer Carlos Ghosn seeks to become the
world’s largest electric-car seller.
Source: Bloomberg