MHI to buy Mitsui's naval-ship business

Japan's Mitsubishi Heavy Industries has agreed with a domestic competitor to purchase its defense-related operations.

Mitsui E&S Holdings has agreed that Mitsubishi will take over its business that services ships of the Maritime Self-Defense Force.

Mitsubishi Heavy Industries President and CEO Izumisawa Seiji said his company hopes to boost competitiveness and productivity by combining the strengths of both firms, and also fulfill its responsibility as a contributor to maritime security.

Mitsubishi has also agreed to take over the building of patrol boats for the Japan Coast Guard.

The company has yet to disclose how much it will pay for the acquisition. But the amount is estimated to be in the tens of millions of dollars.

Mitsubishi is apparently attracted by the relative stability of defense-related contracting .

The coronavirus pandemic has been hurting its aircraft business, including Japan's first passenger-jet project.