Kawasaki Heavy, Mitsui Engineering eye merger talks
Kawasaki Heavy Industries Ltd. and Mitsui Engineering & Shipbuilding Co. are close to starting talks on integrating their business operations, sources said April 22, the Asahi Shimbun reports.
It would create a company with 1.8 trillion yen ($18 billion) in revenue, putting it in second place behind industry leader Mitsubishi Heavy Industries Ltd.,
Business integration may be the only way for the two companies to survive fierce competition from South Korean and Chinese rivals, they said.
Still, some employees of both Kawasaki Heavy and Mitsui Engineering say that management integration may not necessarily improve the competitiveness of their shipbuilding businesses.
Given this uncertainty, it remains to be seen whether the two companies will open talk leading to an integration of their business operations.
