NYK sells “costly” Nippon Cargo Airlines to ANA
No price announced yet; deal likely to be closed by October 1, 2023
Container carrier Nippon Yusen Kabushiki Kaisha (NYK) has signed a memorandum of understanding with ANA Holdings to transfer the entire shares of its cargo airline Nippon Cargo Airlines (NCA).
NYK acquired the entire shares of NCA in 2010 "with the aim of becoming a comprehensive logistics company offering ocean, land, and air transportation. However, the continuous introduction of new aircraft to expand the operation and maintenance system, and the continuous training of personnel engaged in operation and maintenance required a considerable expenditure. In the highly volatile business environment of air freight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs."
While no acquisition price has been announced yet, ANA will acquire all the shares of NCA from NYK in a single transaction. "A particular acquisition method (scheme) and other terms and conditions will be determined through continued discussions."
The deal is likely to be closed by October 1, 2023 or a date to be separately agreed by NYK and ANA, the release said.
NCA has a capital stock of ¥10 billion ($73 million) with net sales of ¥189 billion ($1.3 billion) and net income to the parent company of ¥61 billion ($445 million) in 2022.
