Oval Corp., which builds flow meters, said Wednesday it has ended its capital alliance with a subsidiary of Emerson Electric Co. of the U.S. by buying all the Oval shares held by the subsidiary.

Oval said it bought 5.95 million shares — a 22.7 percent stake — held by Emerson Japan Ltd., a wholly owned subsidiary of Emerson Electric, for roughly 625 million yen.

The move marks the end of all ties between Tokyo-based Oval and Missouri-based Emerson Electric.

In 1985, Oval signed a licensing agreement with Micro Motion Inc. of the United States, a wholly owned subsidiary of Emerson Electric, on the manufacture and sale of flow meters.

In the same year, Emerson Japan became Oval’s biggest shareholder by acquiring its shares through a third-party allotment.

In 1998, differences emerged between Oval and Micro Motion over the manufacturing and sales rights of the flow meters and the companies terminated their agreement in October 2000.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.