Merida Acquires Stake in Miyata

OSAKA, Japan – Last month the 100% owner of Japanese Miyata Cycle Co. - Morita Group - has sold 30% of its Miyata shares to Taiwanese bike producer Merida. The Taiwanese paid JPY 150 million (€ 1.4 million) for this stake in Miyata Cycle. Payment and shares have been transferred officially on 31 August.

Merida took a 30% stake in Miyata Cycle as this company currently holds the exclusive distribution rights in Japan for Merida bikes. In August 2009 the Taiwan based bike maker changed that distribution from Bridgestone Cycle to Miyata Cycle Co. At the same time Japanese Morita Holdings Corp. acquired the remaining stakes in Miyata.

In addition to the shareholding Merida is to cooperate with Miyata in R&D, production and overseas sales. Moreover, Miyata agreed to include an executive director chosen by Merida in its Board who is to assist in getting Miyata back to a profitable status.

Both sides expect the partnership will help to lower production costs. Miyata’s history in the Japanese bicycle market combined with Merida’s experienced production skills should turn the Japanese-Taiwanese partnership into a win-win situation.

By the way; last July after 3 decades of corporation with Miyata in Japan, Dutch bike maker Koga has set up a new distributor: Koga Japan. Formerly well known as Koga-Miyata, the brand will position itself under the registered Koga label without the Miyata extension.

With this new distribution strategy, Koga is intends to grow and penetrate into the Japan’s sporty high-end market. The formal change will start officially on September 1, 2010. During the upcoming Japanese Bike Shows, Koga will present her 2011 model line.