Elliott takes 'significant' stake in Japan shipper Mitsui OSK, sources say

Mitsui O.s.k. Lines

18/03/2026 01:00

By Sam Nussey and Anton Bridge

TOKYO, March 18 (Reuters) - Elliott Investment Management has taken a "significant" stake in Mitsui OSK Lines 9104.T and is pushing the shipping company to improve shareholder returns and capital efficiency, according to two sources familiar with the matter.

The hedge fund believes Mitsui OSK should conduct a review of its real estate portfolio and consider relisting subsidiary Daibiru, the sources also said.

In 2022 Mitsui OSK made Daibiru, whose assets include commercial property in central Tokyo, a wholly owned subsidiary and delisted the company.

Reuters could not immediately determine the size of the stake. It is reporting the investment for the first time.

Mitsui OSK did not respond to a request for comment. Elliott declined to comment. The sources declined to be named as the information is not public.

Activist activity in Japan is pushing companies to accelerate governance reforms and reshape their portfolios.

Elliott thinks the value of Mitsui OSK's fleet is undervalued by the market, the sources said.

Its fleet totals more than 900 vessels, including bulk carriers, tankers and ferries. Its peers include Nippon Yusen 9101.T and Kawasaki Kisen 9107.T.

Mitsui OSK has said it aims to gradually improve its price-to-book ratio, a key valuation metric, to 1 and more over time from 0.67 times at the end of last March.

The Tokyo bourse has put pressure on companies trading below book value to improve their use of capital.

Mitsui OSK has emphasised both the importance of shareholder returns and the need for growth investment. The shipping industry is cyclical and the company aims to grow the proportion of stable revenue.

The shipping company will announce its latest management plan at the end of this month.

Elliott has a growing presence in Japan and scored a landmark win this month after forcing Toyota 7203.T to ​sweeten its bid for Toyota Industries 6201.T.

The hedge fund, which has built a reputation as a relentless activist, has invested in companies including Tokyo Gas 9531.T and Sumitomo Realty & Development 8830.T.

Elliott target Kansai Electric Power 9503.T is considering selling shares of construction firm Kinden 1944.T, Reuters reported last week.

Shipping firms are grappling with the fallout from the Iran war. A Mitsui OSK-owned container ship sustained minor damage while at anchor in the Gulf last week.

 (Reporting by Sam Nussey and Anton Bridge; Additional reporting by Miho Uranaka and Kentaro Okasaka; Editing by Christopher Cushing)

 ((sam.nussey@tr.com;))