Komatsu President and CEO Kunio Noji announced that the Board of Directors resolved the merger of Komatsu Utility Co.--a wholly owned subsidiary of Komatsu Ltd. engaging in the production and sale of forklift trucks and mini construction equipment--with Komatsu Ltd. in the form of simplified absorption-type merger to be effective April 1, 2011.
With respect to the utility equipment business, the Komatsu Group (hereinafter “Komatsu”) has worked to promote structural reforms, improving its earnings foundation. To facilitate new growth into the future, Komatsu has decided to carry out an absorption-type merger and organizationally integrate the utility equipment business. Under a new organizational framework, Komatsu is going to speed up the operational reinforcement in growing overseas markets, further enhance the product competitiveness and efficiency of development by integrating its development operations, and strengthening its human resource development efforts.
As this merger is going to take place between Komatsu Ltd. and a wholly owned subsidiary in the form of simplified absorption, certain matters and descriptions are omitted from the disclosure below.