News of mergers and failed deals has followed one after another in the water treatment industry, marking the full-scale arrival of an era of restructuring in the water business. Discussions on the integration of Kanadevia Corporation and Nippon Steel Engineering Corporation have ended, while Mitsubishi Kakoki Kaisha, Ltd. and Tsukishima Holdings Co., Ltd. have simultaneously announced their management integration. Future developments will be closely watched.
This article examines the direction of future restructuring, focusing on the two major recent developments in the water treatment industry. First, it reports that consideration of a management integration between Kanadevia Corporation and Nippon Steel Engineering Corporation was called off on 29 September, with the discussions concluded. It then reports that Mitsubishi Kakoki Kaisha, Ltd. and Tsukishima Holdings Co., Ltd. announced on 30 September that they had agreed to integrate their management operations in April 2027.
The article presents the author's view that these developments stem not only from financial terms but also from the practical difficulties of reconciling corporate cultures and integrating organisations. It particularly points out that, in integrations between large companies, the transfer of frontline personnel and expertise and the maintenance of cooperative relationships will be important.
It argues that three developments could affect one another and potentially alter the structure of the water infrastructure market. It also discusses developments surrounding the relationship with JFE Engineering Corporation and the view that government demand will become increasingly divided among three major groups, suggesting that the future bidding environment and the way businesses are structured could change significantly. Finally, it concludes that securing and developing talent will be key to corporate growth as demand for ultrapure water increases.