Japanese finance and trading house Orix Corp has signed an agreement to acquire all the shares in compatriot Santoku Senpaku, which operates a fleet of 67 ships.
The deal follows the death of Santoku president and founder Masashi Taga in April last year. He was a hugely influential figure in the operation of the company.
Taga’s son-in-law Junichi Taga took over as president, but the company had been left to consider options for its future.
No price has been announced for the deal. VesselValues estimates the Santoku fleet to be worth $2.6bn in total, including a series of six 7,500-ceu LNG dual fuel car carriers on order in China.
The fleet is mainly made up of modern bulk carriers. It also includes car carriers and container ships.
The company employs 75 people in Osaka, Japan and in the Philippines and is involved in third-party ship management.
Blue-chip clients
Its blue-chip client list of charterers includes the likes of Rio Tinto, Cargill, Evergreen, Mitsui OSK Lines, NYK and K Line.
The acquisition significantly increases Orix’s presence as a shipowner.
Orix has been established in the shipping business for 50 years and through subsidiary Orix Maritime Corp has built up a fleet of 25 vessels, mainly bulk carriers.
It has been selling off bulk carrier tonnage recently.
It is also involved in arranging sale and purchase, ship broking and ship finance activities.
There are similarities between the two companies’ businesses, which are built mainly around lease deals based on long-term charter contracts.
Orix is already developing investment plans for Santoku and its own fleet. Plans are being drawn up to develop Santoku’s business in the coastal trades as part of Japan’s modal shift.
In a statement, Orix said: “Orix and Santoku Senpaku aim to address the environmental impact of the maritime industry by diversifying its fleets, including the adoption of the next generation of environmentally friendly ships. Additionally, in Japan, the companies will tackle the modal shift in transportation to coastal shipping as part of efforts to decarbonise the industry.”
