NYK-Showa merger settled

PUBLISHED : Wednesday, 01 April, 1998, 12:00am
UPDATED : Wednesday, 01 April, 1998, 12:00am

Japan's largest shipping group Nippon Yusen Kaisha and shipowner Showa Line are to merge on October 1.

Showa will be dissolved after the merger and the companies say one Showa Line share will be exchanged for 0.125 NYK share. The merger is the largest in the Japanese business for several years.

Analysts said the NYK move was a bailout of troubled Showa, which has reported losses for several years. At the end of last month, Showa admitted it had liabilities of about 9.5 billion yen (about HK$556 million).