Komatsu Ltd. Buying Out its Japanese Rental Unit to Absorb its Debt

Komatsu Ltd. is buying out its Japanese rental subsidiary Komatsu Rental and will take on the rental company’s debt. Komatsu Ltd., the surviving company, will continue its rental operations in Japan.

The merger agreement was signed this week and, according to plan, will become effective July 1. Komatsu Ltd. owns 79 percent of the total shares of Komatsu Rental and plans to acquire the remaining shares from Chikashi Shike.

Komatsu Rental had net sales of JPY 34.4 billion (about U.S. $424 million).

The rental company will essentially continue to operate as before, with Komatsu Ltd. owning the Komatsu-manufactured equipment in its fleet.

Komatsu Rental is based in Kanagawa, Japan.

At the same time, Komatsu Ltd. said it will continue to enhance its position in strategic markets such as China and Southeast Asia.

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