OREANDA-NEWS. Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. Announced that they have signed a basic integration agreement and a joint venture agreement in relation to the business integration centered on the thermal power generation systems.

As announced on November 29, 2012 in a press release titled “Mitsubishi Heavy Industries and Hitachi Reach a Basic Agreement on Business Integration in the Thermal Power Generation Systems Field,” MHI and Hitachi, on November 29, 2012, agreed to transfer their respective operations centered on the thermal power generation systems by way of company split and other method to an integrated company, of which equity interest of MHI and Hitachi will be 65% and 35%, respectively, effective on January 1, 2014 and signed a basic agreement on the same day.

Today, in accordance with the Basic Agreement, the two companies have signed the Definitive Agreements, specifying the terms and conditions related to the Business Integration obtaining approvals of both companies’ boards of directors. The details of Definitive Agreements are outlined below.

Preparatory company for the integrated company is planned to be established in due course, and the details of the Business Integration will be specified in a company split agreement to be concluded among MHI, Hitachi and the Preparatory Company around the end of July 2013