Mitsubishi Heavy says in talks to acquire Mitsui E&S ship business

Mitsui E&S

12/06/2020 08:18

TOKYO, June 12 (Reuters) - Mitsubishi Heavy Industries
 7011.T  said it had agreed to begin talks with Mitsui E&S
Holdings  7003.T  to acquire its shipbuilding business.
    A deal to acquire Mitsui E&S's shipbuilding unit could help
Mitsubishi Heavy, Japan's biggest defence company, better
compete for naval contracts. It could also mark a tentative step
towards consolidation among Japan's numerous military equipment
makers.
    "Mitsui E&S has strengths in shipbuilding and repair for the
Ministry of Defense including supply vessels and observation
ships," Mitsubishi Heavy said in a statement.
    The two companies will aim to reach a deal by the end of the
year, with Mitsubishi to acquire the unit by October next year
if it received approval from regulators, it said.
    

 (Reporting by Tim Kelly; editing by David Evans)
 ((tim.kelly@thomsonreuters.com; +813-6441-1311;))