Regarding Transfer of Insurance Business
2004-11-29
Tomen Corporation and Toyota Tsusho Corporation have agreed to transfer the insurance business of Tomen F.P. Center Co., Ltd., a 100% subsidiary of Tomen, to Toyota Tsusho. The business will be merged with Toyotsu Family Life Corporation, a 100% subsidiary of Toyota Tsusho.
1.Reason for the merger
Tomen and Toyota Tsusho have discussed how to maximize the effect of business alliance in every business field since deciding to make business and capital alliances on March 28, 2000. Tomen transferred control of its steel business in November 2000; the control of nonferrous metal business in June 2002; and the control of its importing textile machine business in November 2002 to Toyota Tsusho. The transfers have achieved positive effects on an ongoing basis.
The companies have also discussed the future their insurance businesses. The decision to transfer Tomen's insurance activities to Toyota Tsusho and merge it with Toyota Tsusho's own insurance activities aims at future progress.
Strong points from both companies will be synergized through the merge, which will result in increased service power for customers and increased sales strength. Regarding Toyota Tsusho's insurance business, Toyota Tsusho has made its place in the market as a exclusive and top class insurance agency. This merger will enable business expansion for insurance distribution and agency market.
2.Details of the merger
| 1) | Details of sales right |
| * | The sales right of property insurance |
| Tomen F.P. Center >> Toyota Tsusho |
| * | The sales right of life insurance |
| Tomen F.P. Center >> Toyotsu Family Life |
| 2) | Scale of transfer of control: yearly billing 5 billion JPY |
| 3) | Number of transferred employees: 36 people |
3.Schedule of business merger
Tentative date of merger: 1 January, 2005
| * | Insurance business of Tomen F.P. Center will be closed down by 1 January, 2005
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