Nippon Yusen Kabushiki Kaisha (NYK), Shipping and logistics company has signed a memorandum of understanding with ANA Holdings to transfer the entire shares of its cargo airline Nippon Cargo Airlines (NCA).
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 $73 million with net sales of $1.3 billion and net income to the parent company amounting to $445 million in 2022.
In 2010, NYK had acquired the entire shares of NCA in the hope of becoming a comprehensive logistics provider. However, the introduction of new aircraft to expand the operation, training of personnel engaged in for operations and maintenance, heavy maintenance cost of aircraft was a costly affair for NYK.
Since a long time NCA was facing a tough time expanding its business with the rising cost.