Nippon Concrete Industries (TYO:5269) has approved an absorption-type merger of its wholly-owned subsidiary, NC Management Service (NCMS), effective Oct. 1, according to a Tokyo bourse filing on Friday.
The merger aims to improve group management efficiency and consolidate operations, as NCMS manages land and buildings used by manufacturing subsidiaries within the group.
Since NCMS is a wholly-owned subsidiary, the merger will be carried out under simplified procedures without requiring a shareholder vote at the subsidiary level.
The company expects to record a loss on extinguishment of tie-in shares as an extraordinary loss in its non-consolidated financial results, though the exact amount has not yet been determined.