Japanese postal privatization preparatory committee meets

A committee met Wednesday for the second time to decide the details of a planning company that will be founded later this month to prepare for privatizing Japan’s postal services.

On the agenda are issues that the committee could not conclude at its first meeting in December, such as where the planning company should be headquartered as well as the number of shares and executives it should have.

Japan plans to privatize its postal services on Oct. 1, 2007.

Under legislation that cleared the Diet in October, Japan Post, the public corporation currently providing postal services, will be split into four stock firms that will be placed under one holding company.

The planning firm, to be established Jan. 23, will prepare for smooth privatization and deal with issues such as distributing Japan Post’s staffers and assets to the four firms, and possible new businesses for the firms.

Once privatization is launched, the planning firm is expected to become the holding company.