Imabari Shipbuilding to take majority stake in Japan Marine United

Japanese shipbuilder Imabari Shipbuilding has signed an agreement to increase its stake in rival shipyard group Japan Marine United (JMU), taking majority control. The move is subject to approval from relevant authorities in Japan and overseas.

Under the agreement, Imabari’s share of voting rights in JMU will increase from 30 per cent to 60 per cent. The stakes of the other two shareholders, JFE Holdings and IHI Corporation, will each be reduced from 30 per cent and 35 per cent, respectively, to 20 per cent each.

The announcement noted that the Japanese shipbuilding industry's market share has dropped significantly due to the rise of competitors in China and South Korea.

The new structure is intended to increase competitiveness by leveraging each other's strengths and to allow for, "quicker and more comprehensive management judgments," the companies said.

In 2021, Imabari Shipbuilding and JMU established a separate joint sales and design company, Nihon Shipyard. The companies confirmed that there will be no change to this existing joint venture.