Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Tatsuo Yasunaga) has agreed with Komatsu Ltd. ("Komatsu"; Head Office: Tokyo; President: Tetsuji Ohashi) to transfer its 60% share of Road Machinery Co., S.A. de C.V. ("Road Mexico"), which is Mitsui's wholly owned subsidiary owned through its U.S. subsidiary, to Komatsu's subsidiary. Road Mexico is a mining machinery sales and service provider company based in Mexico. The share transfer agreement was concluded between the respective subsidiaries, and, subject to the approval of the relevant authorities on the share transfer, this transfer is scheduled to be executed around February 2016.
After completion of the transfer of the 60% share, Mitsui and Komatsu are considering unifying Road Mexico and Komatsu's wholly owned subsidiary, Komatsu Maquinarias Mexico S.A. de C.V., which is Komatsu's Mexico-based distributor of construction machinery. As a result, a diversified machinery distributor covering both mining and construction machinery will be established in Mexico. Through the utilization of the knowledge and expertise that Komatsu has accrued as a manufacturer, Mitsui and Komatsu aim to achieve further growth of sales and service of Komatsu mining and construction machinery in Mexico.
Outline of Road Mexico (after Komatsu investment)
|Name of Company
|Road Machinery Co., S.A. de C.V.
|Mexico City, The United Mexican States
|1991 (Mitsui investment: 2005)
|Komatsu's subsidiary: 60.0%
Mitsui's subsidiary: 40.0%
|Sales and maintenance services of Komatsu mining machinery
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
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