Mitsubishi Electric Logistics Corporation to Become Seino Subsidiary

TOKYO, June 18, 2024--(BUSINESS WIRE)--SEINO HOLDINGS CO., LTD. (TOKYO and NAGOYA: 9076) and Mitsubishi Electric Corporation (TOKYO: 6503) have today concluded a stock purchase agreement under which Seino will acquire 66.6 percent of the common shares of Mitsubishi Electric Logistics Corporation currently held by Mitsubishi Electric, and a shareholder agreement governing arrangements among shareholders regarding the business operations of the logistics company after the transaction.

Subject to regulatory approvals from relevant authorities, the share transfer is expected to be concluded around October 1 this year and the company will become a subsidiary of Seino, which will hold 66.6 percent of the shares, and an equity-method affiliate of Mitsubishi Electric, which will hold the remaining 33.4 percent.

The importance of building a sustainable logistics supply chain is growing in Japan, where labor shortages are weakening long-distance transportation capabilities, and emergencies such as pandemics and disasters have been shown to disrupt supply chains. Other pressures include the increasing diversity of goods being shipped and the growing complexity of transportation due to the globalization of production bases and sales channels.

Under such circumstances, Seino has been promoting initiatives to streamline its entire logistics operations, such as through the establishment of new domestic bases and the expansion of logistics functions in various areas, under its strategy focusing on transitioning from a "LTL trucking company" to a "logistics company". In Seino’s "Medium to Long-term Management Direction - Desired State and Roadmap 2028" formulated in June 2023, Seino has positioned its Electronics Solutions Division, Automotive Battery Logistics Division, and Healthcare Solutions Division as the "three focus areas" in its logistics operations, supporting the optimization of global companies’ supply chains by enhancing industry-specific solutions through improved compatibility with Seino’s overseas networks.

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