Japan Energy Corp. will consolidate and reorganize its four engineering subsidiaries an effort to reinforce their competitive edge, the major Japanese oil refiner and distributor announced Tuesday.
Koyo Iron Works and Construction Co., now 43.84 percent owned by Japan Energy, will become a wholly owned subsidiary through a share swap that will entail the delisting of Koyo shares on the Tokyo Stock Exchange's Second Section on Jan. 10, 2001.
Koyo will then merge with Nikko Consulting and Engineering Co., an 80 percent owned subsidiary.
Nikko will be the surviving entity in the merger. It will then absorb the engineering division of JOMO Enterprise Co., also a wholly owned subsidiary. JOMO will remain a separate unit running facility leasing and real-estate operations.
Nikko, which will be owned approximately 90 percent by Japan Energy after the merger, will also turn the parent's Automax Co. into its own wholly owned company.
Japan Energy plans to complete the reorganization by April 1, 2001.