Two-month delay to ANA’s Nippon Cargo takeover
29 / 01 / 2024
All Nippon Airways (ANA) has again delayed its takeover of freighter carrier Nippon Cargo Airlines (NCA) as regulators continue to examine the deal.
ANA had been hoping to complete the transfer of shares on February 1 but this has now been pushed back until April 1.
The Tokyo-headquartered carrier explained that the delay was down to the length of time it was 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,” the company said in a stock exchange announcement.
It is the second time the deal has been delayed. The deal had originally been planned for completion on October 1 but was pushed back to this year also to due the time it takes competition authorities to examine the deal.
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.
“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.
