NYK and Yusen have been discussing the merits of merging NYK Logistics and Yusen Air & Sea Service for the past four months.

Effective on or around October 1st, 2010, NYK Logistics (Japan) will be integrated into YAS through an absorption-type de-merger or business transfer with cash consideration. The stock of overseas subsidiaries owned by NYK Logistics will not be transferred for the time being.

On completion of the integration, YAS will change its trade name to Yusen Logistics Kabushiki Kaisha (English name: Yusen Logistics Co), and the newly integrated company will remain a listed subsidiary of NYK.

The two companies' logistics businesses outside Japan will be integrated gradually between April 2011 and March 2012, basically through the establishment of joint ventures.

Although the details of the integration scheme are under discussion, the newly integrated company will, in principle, make the subject JVs their consolidated subsidiaries and will lead the business operations of those subsidiaries.