ARCHION, newly established through the integration of Hino Motors and Mitsubishi Fuso Truck and Bus, provisionally recorded negative goodwill and raised its operating profit forecast for fiscal 2026. Its dividend policy, however, remains unchanged, with the cash dividend staying at ¥8. The treatment of the gain that will not be converted into cash, and the points requiring further confirmation, are the focus.
ARCHION, established in April through the integration of Hino Motors and Mitsubishi Fuso Truck and Bus, will provisionally record ¥233.246 billion as a gain on bargain purchase, representing the difference between the net assets acquired and the acquisition consideration. The revenue forecast remains unchanged at ¥2.425 trillion, while the operating profit forecast excluding provisional negative goodwill also remains at ¥110 billion. The company says the increase represents a type of gain that does not involve the receipt of cash.
The company explains that this gain cannot be received in cash and is not included in the distributable amount. Because purchase price allocation has not yet been completed and the figures remain provisional, the gain does not provide a basis for increasing the dividend in line with the threefold increase in profit. Negative goodwill is a one-off figure reflecting the difference between the acquisition consideration and the fair value of the assets and liabilities acquired, and it may be revised in future financial results.
This does not mean that the same accounting gain will arise at the 19 companies other than ARCHION. The article organizes the information as a map showing the division of roles among the five companies involved in the M&A. Points requiring further confirmation include whether negative goodwill will arise at the other companies, when purchase price allocation will be finalized, and whether the gain will be converted into cash.