Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Kenichi Hori) has entered into an agreement through Mitsui & Co. Europe Ltd. to acquire the Port of Nigg in northeast Scotland and part of the business owned by GEG (Holdings) Limited (“GEG”), jointly with Mitsui O.S.K. Lines, Ltd. (“MOL”, Head Office: Tokyo, President and CEO: Takeshi Hashimoto), a share purchase agreement has been concluded. The acquisition covers steel processing and equipment manufacturing business, as well as its base port operation business, both of which serve the energy sector, primarily offshore wind power generation, oil, and gas.
Mitsui has been engaged in business activities in line with the UK’s energy transition since acquiring a stake in GEG in April 2012. Going forward, the business activities subject to the above acquisition will be run by Global Energy Service Holding Limited (“GESH”, Head Office: Scotland, UK), in which Mitsui will have a 51% stake and MOL a 49% stake. Completion is expected in the summer of 2025. Mitsui’s equity in the other remaining businesses held by GEG will be sold to the founder of GEG.
The UK is expected to accelerate its efforts to ensure stable supplies of oil and gas and introduce renewable energy, especially offshore wind power, with the aim of improving its energy self-sufficiency and achieving the net-zero target by 2050. The Port of Nigg is especially important for offshore wind power generation and is expected to play an increasingly significant role in the future because of its location on the North Sea coast of Scotland, which is the world’s biggest offshore wind power development area. Through this acquisition, Mitsui will combine the extensive industrial networks that it has built as a global trading and investment company, with the shipping and port business assets accumulated by MOL as a shipping company, thereby strengthening steel processing and manufacturing operations, base port operations, and supply chains centered on these activities.
Mitsui has made a range of strategic investments related to the energy sector in the UK, including the pipeline repair equipment and technology service business of STATS (UK) Ltd. This latest acquisition will further strengthen Mitsui’s energy value chain. In ensuring a reliable supply of energy in this region and taking actions to counter climate change, Mitsui will strive to achieve “Establish a foundation for sustainable and stable supply” and “Create a community coexisting with nature”, both of which are constituents of Mitsui & Co.’s Materiality.
Structure
Company Profile: GESH
Company name
Global Energy Service Holding Limited
Location
Inverness, Scotland, UK
Established (launch of operation)
February 7, 2024
Representative
Yoshihiro Hayakawa
Employees
248
Business activities
Base port operations for offshore wind farms, etc., and facility processing and equipment manufacturing for the energy sector, including oil and gas
Company Profile: Mitsui O.S.K. Lines
Company name
Mitsui O.S.K. Lines, Ltd.
Location
Minato-ku, Tokyo
Established
1884
Representative
Takeshi Hashimoto
Employees
1,329
Business activities
General maritime transportation services
Website
Main business locations of GESH
The Port of Nigg
