Mitsui Chemicals plans to acquire JSR to pursue growth in its semiconductor materials business. The acquisition price was reported to exceed ¥1.3 trillion, and the share price temporarily fell sharply on market concerns about financial deterioration.
Mitsui Chemicals was reported to have finalized plans to acquire major semiconductor materials company JSR for more than ¥1.3 trillion, in what would be one of the largest M&A transactions ever in Japan's chemical industry. The company aims to expand its business scope in the semiconductor materials sector as a result.
The deal has been described as a strategic investment aimed at countering advances by Chinese competitors amid intensifying competition in Japan's high-performance materials sector. It suggests recognition that the competitive environment in Japan and overseas is contributing to the erosion of growth areas.
Following the acquisition decision, Mitsui Chemicals' share price plunged by approximately 14% from the previous trading day on the 4th. The market was reported to be strongly focused on concerns about financial deterioration.