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Komatsu Announces Restructuring of the Rental Equipment Business in Japan
Komatsu Ltd. approved the merger of Komatsu Rental Ltd., a consolidated subsidiary.
Komatsu stated the planned restructuring calls for a reassessment of the roles of the rental business conventionally played by Komatsu Rental in the Komatsu Group. Komatsu Ltd. is going to succeed to the rental equipment assets of Komatsu Rental, while a new wholly owned subsidiary of Komatsu Ltd. will take over and engage exclusively in rental operations for customers in the Japanese market. In this simplified absorption-type merger of a consolidated subsidiary, Komatsu Ltd. will become the surviving company, and Komatsu Rental will be dissolved.
As Komatsu Rental has excessive liabilities, which are believed to be too large for Komatsu Rental to resolve before the merger, Komatsu Ltd. is going to waive JPY 23 billion (planned) its claims in the form of loans to Komatsu Rental prior to the concerned merger and thereby resolve the problem of Komatsu Rental's excessive liabilities.
Also prior to the concerned merger, Komatsu Rental will establish a wholly owned, new rental company, and execute an absorption-type company split with Komatsu Rental becoming the splitting company and the new rental company becoming the succeeding company. The succeeding company will succeed to Komatsu Rental's assets and liabilities (except for rental equipment manufactured by Komatsu Ltd., some real estate and liabilities related thereto).
Article Date: 2011-05-01
Source: Komatsu Ltd.
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