Azbil and OTEC Enter into Capital and Business Alliance Agreement
— Strengthening Project Management and Engineering Capabilities and Jointly Developing New Products and Services —
Azbil Corporation (Tokyo Stock Exchange Code: 6845) and OTEC CORPORATION (Tokyo Stock Exchange Standard Market Code: 1736) entered into a capital and business alliance agreement on October 26, 2026. In conjunction with the agreement, Azbil has decided to acquire additional shares of common stock of OTEC (the “Share Acquisition”). Upon completion of the Share Acquisition, OTEC is expected to become an equity-method affiliate of Azbil.
Guided by its Purpose, Expanding Technological Frontiers, Unlocking Human Potential, Azbil is advancing its medium-term plan under the theme of Evolution and Co-creation. OTEC has established Making Buildings Comfortable and the Future Sustainable as its long-term vision, V100. Since entering into an authorized distributorship agreement in 1961, Azbil and OTEC have built a cooperative relationship spanning more than 60 years through the sales, project management, and maintenance of products in the building automation field.
In the building automation market, demand for renovation and energy-saving solutions for existing buildings remains robust, while securing and developing personnel for project management and engineering has become an increasingly important challenge. Against this backdrop, the two companies will strengthen their capital relationship and draw on their respective business foundations, including customer touchpoints, technologies, expertise, and human resources. Through these efforts, the two companies will expand their project management and engineering capabilities, jointly develop new products and services, and strengthen their ability to provide solutions for highly complex projects, with the aim of achieving sustainable growth and enhancing enterprise value over the medium to long term.
Key Areas of Collaboration under the Capital and Business Alliance
- Enhancing both companies’ project management and engineering capability through mutual cooperation for developing and deploying licensed and qualified engineering personnel, including construction management engineers and chief engineers, as well as project management personnel
- Strengthening the ability to execute large-scale and other highly complex projects through mutual cooperation aimed at enhancing personnel expertise and skills
- Jointly developing new products and services by mutually leveraging the products, services and technologies of both companies
Overview of the Capital Alliance
Azbil currently holds 750,000 shares of common stock of OTEC, representing 4.79% of OTEC’s voting rights. Through the Share Acquisition, Azbil plans to acquire an additional 2,387,000 shares of common stock of OTEC, representing 15.25% of the voting rights. Following the acquisition, Azbil’s ownership of voting rights in OTEC is expected to increase to 20.04%. The Share Acquisition is scheduled to be conducted subject to Azbil receiving notice from the Japan Fair Trade Commission that it will not issue a cease and desist order and the expiration of the waiting period under Japan’s Antimonopoly Act (or such shortened period, if shortened). For further details of the Share Acquisition, please refer to the timely disclosure released on the same date.
Company Profiles
| Company Name | Azbil Corporation |
|---|---|
| Headquarters | 2-6-1 Marunouchi, Chiyoda-ku, Tokyo 100-6925, Japan |
| Representative | Kiyohiro Yamamoto, Director, President and Group CEO |
| Business activities | Development, manufacture, sales, and servicing of measurement and control equipment and systems |
| URL | https://www.azbil.com/ |
| Company name | OTEC CORPORATION |
|---|---|
| Headquarters | 1-11-1 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan |
| Representative | Shinichi Ichihara, President and Representative Director |
| Business activities | Design, project management, engineering, and maintenance of automatic control systems; sales of plumbing and piping equipment and environmental equipment |
| URL | https://www.o-tec.co.jp/ (Japanese only) |
Through this capital and business alliance, Azbil and OTEC will work to strengthen their project management and engineering capabilities, enhance and expand their services, and create new value, thereby strengthening their ability to provide solutions throughout the building lifecycle, with the aim of achieving sustainable growth for both companies.
* Posted information is accurate as of the date of announcement.