Japan Post Holdings Co. President Masatsugu Nagato has said that mergers and acquisitions are “a very powerful management tool” for the postal service group.

Japan Post is expected to actively seek business acquisitions and capital alliances in the logistics sectors both at home and abroad, aiming to bolster the profitability of its mail and parcel delivery unit, Japan Post Co.

In May 2015, the subsidiary acquired major Australian distribution group Toll Holdings Ltd. for some ¥620 billion.

The acquisition of Toll “is not the end” of the group’s business acquisition strategy, Nagato, who took office on April 1, said in an interview.

On delays in mail and parcel deliveries caused by a series of strong earthquakes that recently hit Kumamoto Prefecture and other parts of Kyushu, Nagato said, “We will make every effort to restore the services as quickly as possible.”

Nagato sounded positive about Japan Post Bank, a key Japan Post Holdings unit, forming partnerships with regional financial institutions. But he said, “There are no concrete plans” at the moment.

Japan Post Bank faces the challenge of diversifying its investment, which now heavily relies on Japanese government bonds, as JGB yields have fallen substantially due to the Bank of Japan’s negative interest rate policy introduced in January.

Later this year, the banking unit will start new asset management moves, including pouring money into investment funds, Nagato said, adding, “Substantial progress has been made in preparations” for the new moves, including procedures for obtaining approval from the Financial Services Agency.