MacroAsia, Japan’s Konoike ink cross-acquisition deal

Lucio Tan-controlled Macro-Asia Corp.—the Philippines’ dominant aviation support service provider—and Japan’s Konoike Transport Co. Ltd yesterday announced a cross-acquisition deal which would see both firms acquiring stakes in each other’s units and benefiting from both the Philippine and Japanese aviation markets.

MacroAsia said it had “agreed to a mutually beneficial partnership” where it would acquire a 30-percent stake in Japan Airport Service Co. Ltd. (Jasco) through NKS Holding Co. Ltd., the Tokyo-based subsidiary of logistics firm Konoike Transport.

Meanwhile, a 20-percent stake of MacroAsia’s wholly owned ground handling subsidiary, MacroAsia Airport Services Corp. (Mascorp), would be acquired by Konoike Transport.

This cross-border transaction was concluded in a signing ceremony held in Manila on Tuesday. Konoike Transport is one of the leading service contracting and logistics service providers in Japan. Founded in 1880, it had grown to 27 companies natively and operated in 12 countries with a total workforce of about 25,000.

“Through this partnership, the sustainable growth of MacroAsia in the next 10 years will be reinforced,” the company said in a statement. “Japan’s robust growth in local and international travelers will create tremendous demand on airport ground handlers and other aviation support service providers.”

“In fact, based on Japanese government targets that by 2020 foreign travelers or tourists will reach 40 million, and 60 million by 2030,” it added. “These positive factors such as growth in inbound tourism, construction of additional runways and the marked increase in the number of flights operated by major airlines and low cost carriers all point to a considerable increase in infrastructure development and demand stimulation at the national level.”

Currently, Konoike’s airport division operates in six airports: Narita, Haneda, Kansai, Fukuoka, Itami and Kobe. With the help of Mascorp in addressing the human capital issue, it intends to operate in other airports.

The partnership will provide Konoike Transport the advantage of being able to secure the needed human resources from the Philippines, through Mascorp, to support the expected growth in demand for passenger and ground handling services.

With this expansion in Japan, Mascorp will be able to generate additional revenue and benefit from the management exchange program where best practices in both countries can be adopted, the firm said.