The terms of the letter of intent include the following:
- FMS Canada, with the support of Mitsui, will establish a wholly owned subsidiary company in Japan ("FMS KK").
- Mitsui will provide FMS KK with marketing support in Japan by allow FMS KK access to its’ list of existing customers and partners.
- Mitsui will provide FMS KK with consultation in regard to its sales and marketing strategy in Japan.
- Mitsui will share in a portion of certain revenues resulting from business generated under this relationship.
- FMS Canada will allow Mitsui to participate in future equity financings of FMS Canada.
"As FMS moves into the Japanese market, we recognize that our success will be aided by working with companies that have strong brand names and an entrepreneurial spirit. We are excited to have Mitsui as a marketing partner", said Norio Saida, President of FMS KK.
Mitsui is the largest trading company in the world, and ranks sixth on the Fortune 500 Global list of companies, based on 1999 revenues of $118 billion. The company has 89 offices worldwide including 34 in Japan, 549 subsidiary companies including 282 in Japan. Aside from its core business of international trade, Mitsui's services extend to identifying new business opportunities, assist in technology transfers, and organize joint ventures while investing its own capital and management time to promote the success of new enterprises.
Mitsui's new Long-term Management Vision, covering the period through fiscal 2009, calls for Mitsui to enhance its capabilities to provide packages of distribution logistics, business-related investment, and financing services to provide value-added solutions to clients' business problems. The goal of the Vision is to set a direction toward the future optimum and provide guidance to the best strategies here and now.