Mitsubishi Heavy Industries Ltd (MHI) and Nippon Yusoki Co Ltd (Nichiyu) have signed an absorption-type split agreement and an integration agreement of their forklift operations after the passing of resolutions at the two companies' respective board of directors meetings.

The companies signed a basic agreement on 29 November 2012 (Forkliftaction.com News #594).

Under the integration agreement, the forklift operations of MHI will be spun off and integrated into Nichiyu. The corporate name of the new integrated entity in charge of forklift business will be Mitsubishi Nichiyu Forklift Co Ltd. Hideaki Ninomiya, the current president of Nichiyu, has been selected as the president of the new entity.

The absorption-type split and forklift business integration agreements were concluded on 6 February.

Nichiyu shareholders will meet on 14 March at an extraordinary general shareholders meeting. The corporate spin-off is subject to their approval, as well as approval by relevant government agencies.

Approval by MHI shareholders through a general shareholders meeting is not required because the spin-off fulfills the requirements of a "simple absorption-type split" as stipulated in Article 784, Paragraph 3, of the Companies Act.

The integration is expected to be finalised by April.

Separately, MHI has appointed Shunichi Miyanaga, currently an MHI representative director and senior executive vice president, as the company's new president, effective on 1 April.

MHI current president, Hideaki Omiya, will become chairman of the company, succeeding Kazuo Tsukuda, who will become senior corporate advisor.