Japanese Dainippon Shigyo and Nippon Hi-Pack to merge

Mar 29, 2004. /Lesprom Network/. The Japanese converter, Dainippon Shigyo, has signed a letter of intent to merge with fellow Japanese firm, Nippon Hi-Pack, on January 1, 2005. Under the arrangement, Dainippon Shigyo will be the surviving entity and each Nippon Hi- Pack share will be exchanged for 0.65 of Dainippon Shigyo. The name of the merged company has not yet been decided. Both sides are expected to enter an agreement in mid-July and finalize the deal at the end of September. Dainippon Shigyo said the link-up is aimed at achieving synergies and cost savings that can be realized from joint operations. This will help the company deal with the fierce competition and rapidly changing business environment of the Japanese packaging industry. Dainippon Shigyo owns four converting plants and Nippon Hi- Pack operates six facilities. The total assets of the merged firm will be approximately at Yen 56.9 billion ($523 million).