#Japan #Tokyo #NOK Corporation #Eagle Industry #NOK Group

NOK and Eagle Industry Join Forces to Establish NOK Group Corporation

In a significant move towards operational synergy, NOK Corporation and Eagle Industry have officially resolved to establish NOK Group Corporation, a joint holding company, scheduled to commence operations on October 1, 2026. This merger signals a strategic integration aimed at amplifying business efficiency and enhancing corporate value through shared resources and capabilities.

Background of the Merger

Founded in 1941, NOK Corporation initially started as a manufacturer of rubber oil seals under the name Japan Bearing Manufacturing Co., Ltd. Over the decades, the company has expanded its product offerings, providing essential sealing solutions not only for the automotive industry but also across various sectors globally. The introduction of flexible printed circuit boards in 1969 marked a significant step in NOK's evolution, catering to the growing demand in electronics and automotive applications.

Eagle Industry, on the other hand, was established in 1964 as a spinoff from NOK's mechanical seal division. With over fifty years of experience, Eagle Industry has cemented its position as a comprehensive manufacturer in the mechanical seal sector, catering to industries such as automotive, construction machinery, general industrial machinery, semiconductors, maritime, and aerospace sectors.

The companies have maintained a collaborative relationship over the years, particularly in sales agent roles within the automotive segment and through resource exchanges. However, with increasing global pressures, including climate change initiatives and the need for carbon neutrality, the two companies recognized an urgent need to unite forces to tackle emerging challenges in next-generation mobility and energy markets.

Objectives and Synergies of the Merger

The primary aim of this merger is to optimize the management resources and capabilities of both companies, ultimately enhancing their collective corporate value. By merging, NOK and Eagle Industry expect to yield several beneficial outcomes:

1. Optimized Resource Allocation: The merger allows for the combined strengths of NOK's oil seals and Eagle's mechanical seals to penetrate new markets effectively, leading to expansive growth opportunities.
2. Increased Operational Efficiency: By consolidating resources and streamlining operations, both companies hope to enhance productivity while reducing redundancy in operations which will reflect positively on profitability.
3. Effective Management Resource Distribution: The new holding company will establish a more strategic framework to oversee resources across both companies, enabling smarter decisions on investments, including mergers and acquisitions.

Transition to Holding Company Structure

The plan to transition to a holding company structure involves the establishment of NOK Group Corporation via a joint share transfer. This initiative will lead to both parent companies becoming wholly-owned subsidiaries of the new entity. As part of this process, NOK and Eagle Industry are set to request necessary approvals from their shareholders and secure relevant regulatory permissions.

Timeline for Implementation

The integration process is structured into several key phases:

• - November 10, 2025: Approval of the merger agreement and finalization of the share transfer plan.
• - March 31, 2026: Record date for shareholder meetings.
• - Late June 2026: Shareholders' meetings to approve the share transfer plan.
• - September 28, 2026: Last trading day for shares on the Tokyo Stock Exchange.
• - October 1, 2026: Official commencement of NOK Group Corporation.

Conclusion

The formation of NOK Group Corporation marks a pivotal change for both NOK and Eagle Industry, setting the stage for a new, collaborative future. By joining forces, they not only aim to enhance their market position but also commit to providing superior products and innovative solutions that cater to an evolving industry landscape. This strategic move reflects a united approach to addressing the growing demands of sustainability and efficiency in the global market, ensuring lasting prosperity for both entities in the years to come.

For detailed information regarding the merger and share transfer, please refer to the official documentation provided in the PDF.