Amada to absorb wholly-owned subsidiaries for operational efficiency

Amada Co., Ltd. will absorb its wholly-owned subsidiaries, Hokkaido Amada Co., Ltd. and Amada Business Support Co., Ltd., effective April 1, 2026. This absorption-type merger, approved by Amada's board of directors on December 18, 2025, aims to consolidate functions and improve operational efficiency across the group. Hokkaido Amada, responsible for sales and service in the Hokkaido region, and Amada Business Support, which handled certain head office HR tasks, will both be dissolved.

As the surviving company, Amada will not issue new shares or allot cash for this merger, as both Hokkaido Amada and Amada Business Support are 100% subsidiaries. The merger qualifies as a simplified merger for Amada and a short-form merger for the subsidiaries, meaning shareholder approval meetings are not required. Amada's name, location, representative titles, business description, share capital, and fiscal year-end will remain unchanged post-merger.

The financial impact on Amada's consolidated results is expected to be minimal due to the merger involving wholly-owned subsidiaries. As of March 31, 2025, Hokkaido Amada reported 10 million yen in capital, with Amada Business Support at 100 million yen.