Japan's Mitsui Bussan I-Fashion & Nippon to merge textile businesses

The absorption-type split will be implemented with NST as the splitting company and MIF as the succeeding company. The merger will be effective from January 1, 2022 (tentative), the two companies said in a joint media release.

MIF will issue and allocate 4,133 new shares of MIF to NST as compensation for the split. As a result, Mitsui and NST will each hold a 50 per cent stake in the succeeding company as of the effective date of the split after the completion of the Split. MIF will no longer be Mitsui’s consolidated subsidiary but Mitsui’s equity method affiliate.

Mitsui and NST have been exploring opportunities to strengthen their respective textiles business platforms and pursuing sustainable growth and development. On February 3, 2021, the two companies concluded a basic agreement regarding the commencement of discussions on the merger.

MIF and NST aim to improve competitiveness and build a robust business base by maximising the synergy benefits resulting from the combination and complementation of marketing capabilities, customer networks, and their respective areas of strength in terms of products and services.

Mitsui and NST will make optimal use of their business resources across their entire supply chains from upstream to downstream areas to expand business in overseas markets with growth potential. They will also work to achieve sustainable growth through the use of digital technology to provide new services, as well as the creation of new business opportunities focusing on sustainability, such as the utilisation of recyclable materials, and the establishment of a product recycling system.

Mitsui and NST aim to help customers to achieve innovation (such as cost reduction, business process digitalisation and sustainability response) through new initiatives based on the application of digital technology to functional processes, such as planning, production and logistics, using textiles business knowledge that they have accumulated over many years.

Fibre2Fashion News Desk (KD)