Hitachi to acquire auto logistics firm Vantec

Hitachi Transport System aims to take a majority stake in automotive logistics service provider Vantec Corp through an imminent tender offer, reported The Nikkei.


Hitachi Transport has priority negotiation rights to buy shares from Vantec's largest stockholder, Mizuho Capital Partners, which holds an almost 40 percent interest in Vantec. In addition, Vantec's management is expected to support the offer.


Vantec's market capitalisation stands at US$34.66 million.
Hitachi Transport and Vantec generated combined sales of about $5.43 billion in fiscal 2009. Excluding Japan Post Service, the acquisition will make Hitachi Transport the nation's fifth-ranked logistics firm, trailing such rivals as Nippon Express and Yamato Holdings.


Its strength lies in shipping consumer electronics and everyday goods, but it is weak in autoparts. It is scrambling to tap emerging markets, having acquired an Indian logistics provider last year and expanded into China's inland regions.


Meanwhile, Vantec's main business is transporting autoparts and finished vehicles. The former Nissan Motor affiliate has been bolstering its global logistics network as major carmakers ramp up production in emerging markets.


The two firms apparently saw complementary features in the goods they handle, and that teaming up would mutually benefit overseas expansion amid trade deregulation.
(Source:http://www.cargonewsasia.com)