Mitsubishi Heavy Industries, Ltd. announced that it will acquire the ship business for the Ministry of Defense from Mitsui E & S Holdings, a former Mitsui Engineering & Shipbuilding Company.
The aim is to strengthen the defense-related business, whose profits are relatively stable, while the aircraft business is declining due to the impact of the new coronavirus.
According to the announcement, Mitsubishi Heavy Industries will acquire "ship business" from Mitsui E & S Holdings, which builds ships for the Ministry of Defense.
They also agreed to acquire the Japan Coast Guard patrol boat construction business.
The purchase price has not been disclosed, but it is estimated to be in the billions of yen.
Mitsubishi Heavy Industries has been expanding its defense-related business, which has relatively stable profits, as demand for aircraft-related products is declining due to the impact of the new coronavirus, and profits are also deteriorating in the first domestic jet airliner business. The aim is to strengthen it.
On the other hand, Mitsui E & S will withdraw from the construction of large ships in Japan, and will focus on ship design in the future.
At the press conference, Mitsubishi Heavy Industries President Seiji Izumisawa said, "We would like to enhance our competitiveness and fulfill our responsibility for ocean security by incorporating the good points of both companies."