UMW partners Japan’s Komatsu

PETALING JAYA: UMW Holdings Bhd has entered into a transaction agreement with Japan’s Komatsu Ltd to partner each other in the heavy equipment business.

UMW said in a filing with the stock exchange, the collaboration between the parties is intended to further strengthen and expand the market penetration and competitiveness of Komatsu’s products in Malaysia, Brunei, Singapore, Myanmar and Papua New Guinea.

“The collaboration will also enable the JV company to adopt the latest best practices and business models of Komatsu’s business in the neighbouring countries.”

Komatsu manufactures construction and mining equipment, utilities, forest machines and industrial machinery.

UMW will establish a wholly owned subsidiary in Malaysia – the JV company which will acquire all of the shares held by UMW in its subsidiaries, which are involved in the heavy equipment business in Malaysia, Brunei, Myanmar and Papua New Guinea.

A new Singapore company will be incorporated under the JVC to take over UMW’s heavy equipment business in Singapore from the UWM’s existing subsidiary in Singapore.

Komatsu will then acquire a 26% stake in the JV company from UMW for RM133.9 million and the remaining 74% will continue to be held by UMW.

UMW rose 23 sen or 3.9% to RM6.20 yesterday with 765,800 shares traded.