Universal Shipbuilding Corporation signed a memorandum of understanding to acquire IHI Marine United Inc. from IHI Corporation (TSE: 7013) in stock on January 30, 2012. Universal Shipbuilding Corporation will acquire 0.84 million shares of IHI Marine United. On completion, IHI Marine United Inc. will merge into Universal Shipbuilding Corporation and Universal Shipbuilding Corporation will be retained as the surviving entity and Japan Marine United Corporation will be the name of combined entity. Post transaction, Shigemi Kurahara will be Chairman of the board, Shinjiro Mishima will be President and Represenative Director, Yoshio Otagaki will be Representative Director, Vice president, Kuniteru Ishikawa will be Director, Ship division Manager, Hiroki Ishikawa will be Director, Engine life cycle Manager, Hitoshi Suzuki and Toshiyuki Ogasawara will be the auditor in the combined group.

The final agreement will be executed by August 31, 2012. The terms and conditions including the ratio of new share allotment in connection with the deal will be decided by executing the final agreement. IHI Marine United had net assets of ¥23.318 billion, total assets of ¥136.420 billion, net sales of ¥176.182 billion, operating income of ¥10.393 billion and net income of ¥8.639 billion for the year ended March 31, 2011. Upon completion of the deal, Shigemi Kurahara, current President and Chief Executive Officer of IHI Marine United will become the Chairman of the surviving entity and Shinjiro Mishima, current President and Chief Executive Officer of Universal Shipbuilding will become the President. The surviving entity after the merger shall succeed all the employees employed by Universal Shipbuilding and IHI Marine United as of the effective date of the merger. As of September 18, 2012, JFE Holdings and IHI Marine United Inc. have decided to change the merger date to November 1, 2012 because reviews and approval
processes regarding competition law are still ongoing overseas.

The deal is conditional upon the permission from government authorities concerned and the approval of the respective general shareholders meetings of Universal Shipbuilding and IHI Marine United. The general shareholder meeting of Universal Shipbuilding Corporation, IHI Marine United and IHI Corporation will be held by September 30, 2012 to consider the deal. The deal is expected to close on October 1, 2012. The execution of the memorandum of understanding will have no impact on the earnings forecasts for the current fiscal year of JFE Holdings and IHI Corp. As of August 27, 2012, parties of the transaction concluded a final agreement for the transaction. 637 new shares of the acquirer will be issued as consideration. Management integration is expected as on October 1, 2012 and effective date is changed to November 1, 2012. As of October 22, 2012, it is announced that the transaction of Universal Shipbuilding Corporation and IHI Marine United Inc. has been moved back to December 1, 2012 due to reviews and approval processes related to competition law that are still ongoing overseas. As of November 20, 2012, the deal has been postponed until January 1, 2013 due to reviews and approval processes related to competition law that are still ongoing overseas. As on December 4, 2012, the transaction received overseas approval.

Universal Shipbuilding Corporation completed the acquisition of IHI Marine United Inc. from IHI Corporation (TSE: 7013) in stock on January 1, 2013. The new company will work under the name Japan Marine United Co., Ltd.