Japan's Imabari Shipbuilding has reached a deal to take over the rival Minaminippon yard.
It will buy out shareholders Mitsui Engineering & Shipbuilding (MES) and shipowner Mitsui OSK Lines (MOL) from 1 April, Bloomberg reported.
Further talks will now take place to finalise an agreement.
The Nikkei daily had earlier reported that Imabari would acquire 49% from the two major investors and also pursue further purchases from other shareholders.
