#Fukushima Kotsu #Aizu Bus #Michinori Holdings

Merger Announcement: Fukushima Kotsu and Aizu Bus

In a significant development for public transportation in Fukushima, Fukushima Kotsu Co., Ltd. and Aizu Bus Co., Ltd. have decided to merge. This decision was reached during their respective board meetings and is contingent upon approvals from relevant authorities. The merger is expected to take effect on April 1, 2024. Alongside this, their subsidiary companies, Fukushima Kotsu Tourism Co., Ltd. and Aizu Travel Service Co., Ltd., will also merge on the same date.

Background of the Merger

Both Fukushima Kotsu and Aizu Bus have played pivotal roles in the region’s transportation landscape, operating various services such as local buses, express buses, tourism buses, rail services, taxi operations, and travel services. The aim of this merger is to further develop and sustain the public transportation network while contributing to the local tourism industry.

The parent company, Michinori Holdings, acquired all shares of Fukushima Kotsu in 2009 and Aizu Bus in 2013, making both companies wholly owned subsidiaries. Since then, the two groups have worked closely to improve operational efficiency across similar business sectors.

Recognizing the proximity of their operational areas and the synergy between the two companies, it was concluded that merging operations would yield significant benefits. These include optimizing resources like drivers and vehicles and enhancing operational efficiency through the integration of sales and administrative divisions. Ultimately, this merger aims to deepen their community contributions and strengthen the overall brand image, while also improving workforce retention and recruitment.

Overview of the Merger

Schedule

• - Merger effective date: April 1, 2024, pending regulatory approvals.
• - The merger of Fukushima Kotsu Tourism and Aizu Travel Service will also occur on April 1, 2024.

Merger Structure

• - The merger of Fukushima Kotsu and Aizu Bus will be facilitated as a de facto equal merger, legally classified as an absorption merger, with Fukushima Kotsu retaining its corporate identity.
• - An analogous structure will apply to the merger of their tourist subsidiaries.

Allocation Details

• - No shares will be allocated in the mergers as they involve wholly-owned subsidiaries under Michinori Holdings.

Future Implications

Company Overview Post-Merger

The merger is expected to streamline operations, enhance service delivery, and support regional transportation, ensuring that the public continues to rely on the names **