Howmet to acquire Komatsu's interest in Komatsu-Howmet

Citation

(2000), "Howmet to acquire Komatsu's interest in Komatsu-Howmet", Aircraft Engineering and Aerospace Technology, Vol. 72 No. 2. https://doi.org/10.1108/aeat.2000.12772bab.022

Howmet to acquire Komatsu's interest in Komatsu-Howmet

Howmet to acquire Komatsu's interest in Komatsu-Howmet

Keywords: Komatsu-Howmet, Mergers and acquisitions

Howmet Corporation recently announced that it intends to acquire Komatsu's remaining interest in their Japanese joint venture company, Komatsu-Howmet Ltd (KHL). At present Howmet owns an 81 per cent interest and Komatsu a 19 per cent interest in Komatsu-Howmet Ltd. Howmet is making the acquisition pursuant to an agreement entered into with Komatsu in 1994.

David Squier, President of Howmet, says:

We believe that KHL's operations and business relations have now matured to the point where KHL can stand on its own, without the additional support, needed until now, which the joint venture provided.

Upon the resolution of certain transitional issues, the parties expect the acquisition to be completed in the April-June 2000 time period. At that time, the name of the unit will change to Howmet Japan Ltd, and the facility will be renamed Terai Casting.