ANA again pushes back takeover of freighter airline NCA
26 / 03 / 2024
All Nippon Airways (ANA) has for a third time delayed its planned takeover of freighter carrier Nippon Cargo Airlines (NCA) as regulators continue to examine the deal.
ANA had originally been hoping to complete the deal on October 1 last year, but this was later pushed back until February 1, then April 1 and now the company is expecting the deal to be completed on July 1.
The delays have all been down to the length of time it is taking competition regulators to review the deal.
“Taking into consideration the time to complete the review of the business combination that will result from the share exchange by the relevant authorities in Japan and foreign countries, etc., the company decided to change the effective date of the share exchange from April 1, 2024 to July 1, 2024,” the company said in its latest update.
The cargo carrier is currently owned by shipping group NYK, which is looking to transfer its ownership to ANA due to the cost and expertise required to run an airline.
A basic agreement was reached in March last year and then finalised in July.
“The continual introduction of new aircraft to expand the operation and maintenance system, as well as the continual training of personnel engaged in operation and maintenance required considerable expenditures,” NYK said.
“In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs.”
NCA currently operates a fleet of eight B747-8 freighter aircraft and owns five B747-400 freighters that are operated by ASL and Atlas Air.
ANA said the takeover would dramatically enhance its international air cargo network and products and services based in Japan.
