UPS to buy out Japanese Yamato Express stake
United Parcel Service Inc has reached an agreement to buy out Yamato Transport Co, Japan’s largest door-to-door parcel delivery service, from their Japan joint venture, as the US firm moves to develop its own delivery network.
UPS will buy Yamato’s 49 pct stake in UPS Yamato Express Co by the end of March at an undisclosed price, turning the joint venture into a wholly owned subsidiary.
Through UPS Yamato Express, UPS handles the international home delivery of packages collected by Yamato and consigns to the Japanese transport company the delivery of shipments to Japan. This business relationship is expected to continue indefinitely after the two firms dissolve their capital tie-up in the joint venture.
UPS Yamato Express was established in 1990, and has about 600 employees and annual sales of several tens of billions of yen. It has its own collection and delivery centers in 11 locations in Japan, including Tokyo, Yokohama and Osaka. UPS will build centers in 10 more cities in 2004.
UPS will aim to develop in urban areas its own collection and delivery network that does not rely on Yamato, as part of its effort to open up the Japanese market and bolster delivery services for corporations.
The largest package delivery company in the US is also signalling it is open to an alliance with Japan Post, with an executive quoted as saying that ‘no possibilities will be ruled out,’ the financial daily said.
