Hitachi Transport System : Japan's Hitachi Transport says to scrap tie-up with SG Holdings

Japan's Hitachi Transport System on Thursday said it and delivery firm SG Holdings had decided to scrap a four-year-old capital tie-up, citing the need for greater flexibility in the coronavirus era.

The two companies are no longer considering a merger, Hitachi Transport said, adding it would be returning its 20% stake in SG Holdings for 87.5 billion yen ($830 million).

Hitachi Transport said it expected to book a one-time gain of 20.6 billion yen on its parent-only earnings in the year to March related to the share sale.

It was still determining whether the share sale would have an impact on its consolidated earnings, it said.

($1 = 105.4900 yen)

(Reporting by Hideyuki Sano and David Dolan; Editing by Clarence Fernandez and Elaine Hardcastle)