Oji Paper Co. abandoned its bid to take over Hokuetsu Paper Mills Ltd. after an alliance was formed against it, forcing the company to change its strategy and giving rise to fears of a glut in the paper market.
"Other Japanese paper companies did not share our sense of crisis (about the industry). That may be the largest reason" for the failed bid, Oji President Kazuhisa Shinoda said at a news conference at the company's head office in Tokyo's Ginza district last week.
"Hokuetsu will create new machines at its Niigata factory, while this is time for our company to replace (old) machines," he said, adding that Oji's takeover bid aimed to move more production to Hokuetsu and scrap older facilities at Oji.