Japan's Yusen and Yamato form joint venture to tap global courier market
Two top Japanese transport companies, Nippon Yusen K.K. and Yamato Holdings Co., said Wednesday they will form a capital alliance to fend off mounting international competition in air, land and sea delivery services.
The partnership combines Japan’s biggest shipping company, Nippon Yusen, with its top door-to-door courier service, Yamato.
Each company will buy 6 billion yen (US$54.1 million; €42.61 million) worth of shares in each other and set up a joint venture called Yamato NYK Global Solutions Co. to handle international logistics, the companies said in a release.
The move comes amid increased competition in global shipping and package delivery from such rivals as U.S.-based FedEx Corp. and DHL, which is owned by Germany’s Deutsche Post AG. Yamato is also being squeezed at home by Japan Post, which is the process of being privatized and is seeking partners to expand its international delivery service.
Nippon Yusen and Yamato will set up their logistics joint venture June 1 and capitalize it at 2 billion yen (US$18 million; €14.18 million). The companies aim for sales of 17 billion yen (US$153.2 million; €120.66 million) in the fiscal year ending March 2010.
