MITSUI-SOKO HOLDINGS Co., Ltd. ("Mitsui-Soko", together with its consolidated subsidiaries, "Mitsui-Soko Group") and Sony Corporation ("Sony", together with its consolidated subsidiaries, "Sony Group") today announced that they have concluded definitive agreements pursuant to which Sony Group will accept capital investments from Mitsui-Soko into the logistics business that Sony operates in Japan, Thailand, and Malaysia through its subsidiaries, thereby starting a joint venture (the "Transaction"). The joint venture will continue to provide distribution services for Sony, as well as cultivate additional business by meeting third-party demand for distribution services.
Through the Transaction, Sony is aiming to enhance the quality of distribution services for its electronics businesses and to further increase its cost competitiveness, while Mitsui-Soko is aiming to increase its corporate value by offering new platform-based services.
The summary of the Transaction is as follows:
(1) Sony Group will relocate its logistics operations in Thailand and Malaysia under the umbrella of Sony
Supply Chain Solutions, Inc. ("SSCS-J"), which currently operates Sony's logistics operations in Japan,
Internal Procurement Office ("IPO") operations and Customer Service ("CS") operations. To achieve this,
Sony will conduct the following transactions:
- SSCS-J will acquire all of the shares of Sony Supply Chain Solutions (Thailand) Ltd. ("SSCS-T"), a
- subsidiary of Sony that operates its logistics operations in Thailand; and
- SSCS-J will establish a new company in Malaysia ("New Malaysia Company") and Sony Supply
- Chain Solutions (Malaysia) Sdn. Bhd. ("SSCS-M"), a consolidated subsidiary of Sony that operates its
- logistics operations and IPO operations in Malaysia, will transfer its logistics business to New
- Malaysia Company.
(2) After relocating the IPO and CS operations currently in SSCS-J to different organizations within Sony Group, 66% of the shares of SSCS-J, whose sole function at this point will then become running logistics operations, will be transferred from Sony to Mitsui-Soko. As a result, SSCS-J will become a company that operates a logistics joint venture between Mitsui-Soko and Sony. After the Transaction, Sony will hold 34% and Mitsui-Soko will hold 66% of the shares in SSCS-J. As consideration for the (i) acquisition of SSCS-T shares by SSCS-J, (ii) transfer of the SSCS-M logistics business to New Malaysia Company, and (iii) acquisition by Mitsui-Soko of 66% of the shares of SSCS-J, Sony Group will receive a total of approximately 18,000 million yen from Mitsui-Soko Group.
Sony Group possesses global distribution services for its electronics businesses as well as human resources with a wealth of experience outside of Japan. To further enhance the competitive ability of its distribution operations, Sony Group is allying with Mitsui-Soko as a strategic partner in the Transaction. The Transaction will permit Sony Group to benefit from and utilize, through the joint venture, Mitsui-Soko Group's sales network and extensive knowledge of and experience in the distribution industry. These should enable Sony Group to maintain and enhance the quality of distribution services for its electronics businesses and to further increase its cost competitiveness.
Mitsui-Soko Group developed its medium-term management plan "MOVE 2013" in order to speed up growth of the entire group and realize its business strategies. The plan identifies development and deployment of platform-based services as a central business policy, along with the concentration of investments mainly in the Asia-Pacific sector. The Transaction should permit Mitsui-Soko to benefit from and utilize Sony Group's experienced human resources and global distribution services framework, including Sony Group's experience in closely coordinating distribution and production plans. These should enable Mitsui-Soko to establish platform-based services that take the entire supply chain - from the procurement of components to manufacture to sales - into consideration and, with these, to aim to expand direct sales of its distribution business.
The Transaction is scheduled to be completed in April 2015, subject to the receipt of necessary regulatory approvals. Due to this timetable, the Transaction has no impact on the consolidated financial results forecast for the current fiscal year for either Sony or Mitsui-Soko. Impacts on the consolidated financial results for the next fiscal year are currently under evaluation.
Full information available HERE.
Recommended for You
Latest News Posts
- NZXT introduce the GRID+ V3 fan controller
- Seagate introduce Seagate Secure security features
- NZXT announce their all-new H Series cases
- Why EA closed Visceral and recycled its Star Wars game
- Team Fortress 2 blends with Jurassic Park in new update
- ECOLA Ultra Slim Laptop Cooling Pad Chill Mat
- ASUS Battery Health Charging - windows 10 
- EK Fluid Gaming: Water-Cooled Gaming PC Build Guide
- Thecus® N2350 & N4350 the most affordable Home NAS series now available worldwide
- COLORFUL iGame GeForce GTX 1080 Vulcan X OC Review
- EK Water Blocks releases new Slim Series kits
- BIOSTAR releases new RACING Z370GT7 motherboard
- ASRock announces X299E-ITX/ac, world's first mini-ITX LGA2066 motherboard
- Noctua introduces chromax line fans, cables and heat sink covers
- G.SKILL Releases Fastest 32GB (4x8GB) Trident Z RGB Memory Kit at DDR4-4266MHz