All Nippon Airways Holdings (ANA) is set to take over Nippon Cargo Airlines (NCA), with the transaction seen to culminate by October 1.
NCA confirmed that its parent company, Nippon Yusen Kaisha (NYK), has entered into an agreement to transfer all shares of the B747 freighter operator to ANA.
"On Match 7, 2023, our parent company Nippon Yusen Kaisha (NYK), agreed with ANA HOLDINGS INC. to transfer all of our stocks."
Separately, NYK also made the announcement.
"We, Nippon Yusen Kabushiki Kaisha (NYK) hereby announce that on March 7, 2023, NYK entered into a certain memorandum of understanding with ANA HOLDINGS INC. (ANA) to transfer entire shares of Nippon Cargo Airlines Co., Ltd. (NCA), our consolidated subsidiary, to ANA," it said.
NYK noted that in 2010 it acquired all of the entire shares of NCA with the aim of becoming a comprehensive logistics company offering ocean, land, and air transportation — but the ongoing cost of running NCA amidst a volatile market prompted its decision to divest from the cargo airline.
"... 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 considerable expenditure. In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs," the shipping group added.
NCA currently operate a fleet of eight B747-8 freighter aircraft and owns five B747-400 freighters that are operated by ASL and Atlas Air.
For ANA, NYK said the deal would "dramatically enhance its international air cargo network" and products and services based in Japan and also with the aim to contribute to the development of global economic activities both in Japan and abroad.
"In order for NCA to achieve further growth and increase corporate value from a long-term perspective which includes environmental responsiveness, we believe that it is the best option to transfer shares of NCA to ANA, which operates the same business and has been providing NCA with cooperative relation to strengthen its maintenance system," NYK further said.
Subject to obtaining clearance under applicable competition laws and other conditions, the date of acquisition of NCA's shares would be October 1, 2023.
NCA said in a statement that it is currently expanding its business, but "both NYK and ANAHD agreed that it would be more efficient to achieve tasks such as renewal of fleets and training of maintenance/flight operations, by joining ANA group, so that we can provide highly qualified and competitive transportation services."
"NYK and ANA will keep their discussion aiming at the transfer of our stocks by October 1, 2023, but we will continue our business as is," the all-cargo airline added.
