MC Knit Corporation, MC Fashion Co., Ltd. and M.C. Textile Co., Ltd. to Merge

Mitsubishi Corporation (Head Office: 6-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo; President and Chief Executive Officer: Yorihiko Kojima) has announced the merger of MC Knit Corporation (Head Office: Ebisu Business Tower 2-3th Floor, 19-19, Ebusu 1-Chome, Shibuya-ku, Tokyo; President and Chief Executive Officer: Toshiharu Okuda), MC fashion Co., Ltd (Head Office: JR Ebisu Bldg, 11^th Floor 5-5, Ebius Minami 1-Chome, Shibuya-ku, Tokyo; President and Chief Executive Officer: Yoichi Mizuno) and M.C. Textile Co., Ltd. (Head Office: Myojo Bldg, 8th Floor 3-50-11, Sendagaya, Shibuya-ku, Tokyo; President and Chief Executive Officer: Toshikazu  Tanaka).

 

This merger will consolidate the functions of each company into a single, more efficient enterprise in the fields of textiles and apparel.

 

1.      Merger outline

1)      Schedule

Board of Directors meeting to approve the merger agreement        August 10, 2009

Conclusion of a merger agreement                                                   August 10, 2009

Special shareholder’s meeting to approve the merger agreement   August 18, 2009

Effective date of the merger                                                   October 1, 2009(plan)

 

2)      Process

MC Knit Corporation will absorb MC Fashion Co., Ltd. and M.C. Textile Co., Ltd. Redundant operations will be eliminated and personnel more effectively utilized, resulting in a highly functional and efficient Apparel OEM system. The newly integrated company hopes to provide a more refined array of services to meet customer needs.

3)      Ratio and subsidy

There are no agreements on merger ratio due to the fact that this merger is being carried out between wholly owned subsidiaries of Mitsubishi Corporation. In addition, there is no schedule for payment of the merger subsidy.

 

2.      Profiles of companies involved in this merger

Corporate Name	MC Knit Corporation	MC Fashion Co., Ltd	M.C. Textile Co., Ltd.
Main Business	Manufacture and sales of knitted garments, yarn and knitted fabrics	Operation control and business support for Apparel OEM	Sales of woven and knitted fabrics and garments
Head office address	Ebisu Business Tower 2-3th Floor, 19-19, Ebusu 1-Chome, Shibuya-ku, Tokyo	JR Ebisu Bldg, 11th Floor 5-5, Ebius Minami 1-Chome, Shibuya-ku, Tokyo	Myojo Bldg, 8th Floor 3-50-11, Sendagaya, Shibuya-ku, Tokyo
Representative	Toshiharu Okuda, President and Chief Executive Officer	Yoichi Mizuno, President and Chief Executive Officer	Toshikazu Tanaka, President and Chief Executive Officer
Capital	\ 800 million	\ 100 million	\ 95 million
Annual Sales	\ 22,100 million March 31, 2009	\ 4,000 million March 31, 2009	\10,700 million March 31, 2009

 

3.      Corporate profile after the merger

Company name:                MC Fashion Co., Ltd.

Head Office Address:        Ebisu-SS Building, 3, Ebisu 4-Chome, Shibuya-ku, Tokyo, 150-0013, Japan

(Office relocation is planned on November, 2009.)

Representative:                 Katsuya Ogawa, President and Chief Executive Officer

Capital:                             800,000,000

Common Stock Issued:      16,000 shares

Fiscal Year-End:                End of March

Major Shareholder and Shareholding:        Mitsubishi Corporation 100%

Branch Office:           Osaka, Kobe, Tochigi(Motegi, Haga), Yamagata, Niigata(Gosen)