Japan Post issued a supplementary explanation via its website approximately two and a half hours after the official announcement on October 6 regarding its acquisition of shares in Logisteed Holdings and its business alliance including the operating company Logisteed.
Executive Vice President Tsukasa Yukigi, who gave the explanation, emphasized that the purpose of the stock acquisition and business alliance is to explore ways to diversify revenue streams, such as by incorporating Tonami Holdings and Toll Holdings into the group, and that strengthening the "contract logistics business," which handles 3PL and warehousing, is essential for Japan Post to realize its goal of becoming a "comprehensive logistics company."
They indicated that partnering with Logisteed, which has strengths in 3PL, will lead to the establishment of an end-to-end logistics supply chain encompassing international logistics, domestic logistics, contract logistics, medium and large-volume dividends (trucks), and home delivery (last mile).
<Japan Post's target business model (integrated logistics company)>
Regarding the source of the approximately 1422 billion yen needed to acquire the shares, Japan Post acknowledged that it was "surplus funds" after securing funds for equipment upgrades and other expenses from the approximately 6000 billion yen capital increase conducted by Japan Post this year, and explained that it is a necessary investment to secure the foundation for maintaining universal services such as mail in the future.
The introduction of Logisteed's proprietary technologies, including SSCV, to other JP Group companies remains undecided at this stage.
Executive Vice President Yukiki stated, "I think it was good that we reached an agreement with Logisteed and others while searching for investment partners. We feel some pressure regarding the future results of the collaboration, but those involved are excited and have a bright outlook," showing strong enthusiasm and expectations for maximizing synergies.
