Mitsubishi Electric May Acquire Japanese Laundry Appliance Maker
May 16, 2005
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Appliance maker Mitsubishi Electric Corporation and home laundry appliance maker Nihon Kentetsu Co., Ltd. announced that they would explore making Nihon Kentetsu a 100-percent subsidiary of Mitsubishi Electric through an exchange of shares in accordance with Japanese Commercial Code.
The decision was made at meetings held by the executive officers of Mitsubishi Electric as well as the board of directors of Nihon Kentetsu in which both sides concluded a Memorandum of Understanding (MOU) concerning the exchange of shares.
Mitsubishi Electric group has been persistently pursuing reform of its business structure in order to better respond to changes in business environments from the three perspectives of "growth," "profitability and efficiency," and "soundness," in order to establish a solid business foundation.
Nihon Kentetsu operates primarily in the home laundry and commercial refrigerated cabinets markets. The business environments of those industries have become increasingly severe in recent years. Implementation and progress of tough measures in development, production, and sales areas have become a pressing issue for the company.
Mitsubishi Electric said it intends to make Nihon Kentetsu a 100-percent subsidiary company through a share exchange in order to achieve as quickly as possible the business integration of Nihon Kentetsu's appliance businesses and Mitsubishi Electric Group's home appliances and air- conditioning and refrigeration systems to increase its competitiveness.
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