Daiwa Motor Transportation splits subsidiary to streamline taxi operations

Daiwa Motor Transportation announced a simplified company split of its consolidated subsidiary, Daiwa Motor Transportation Oji Co., to establish a new wholly-owned subsidiary, Daiwa Motor Transportation Toshima Co. The decision was made by the board of directors on December 10, 2025, with an effective date of April 1, 2026. This reorganization aims to simplify business operations and clarify management responsibilities by separating two distinct organizational structures previously contained within a single entity.

The new company, Daiwa Motor Transportation Toshima Co., will inherit a portion of the taxi business, specifically 50 taxi vehicles and related assets and liabilities, from Daiwa Motor Transportation Oji Co. For the first half of the fiscal year ending March 2025, the business segment to be split reported sales of 350 million yen. The new entity will issue 200 shares of common stock, which will be fully allocated to the splitting company and subsequently distributed to Daiwa Motor Transportation as a 100% parent company.

This simplified incorporation-type company split does not require shareholder approval. The impact on Daiwa Motor Transportation's consolidated performance is expected to be minor.