Nippon Shokubai and Sanyo Chemical Industries announce that they have entered into a basic agreement to move ahead with the consideration toward the integration of their businesses (the “Business Integration”) based on an equal footing. The Companies will carry out detailed examinations and discussions concerning the Business Integration based on the spirit of mutual trust and equality, with the aim of concluding the final agreement on the Business Integration (the “Final Agreement”) around December 2019.
Purpose of the Business Integration
With the group mission “
TechnoAmenity - Providing affluence and comfort to people and society, with our unique technology,” Nippon Shokubai, guided by its core catalyst, polymer and organic synthesis technology, has been engaged in the manufacturing of basic chemicals, including acrylic acid and ethylene oxide, as well as the development, manufacture and sale of high-performance functional chemicals and environmental and catalyst products using these basic chemicals as raw materials.
Mutual Complementary Relationship
Each Company has set their respective medium-term management plans and has been working on countermeasures to deal with the changes in the external circumstances, but in the course of discussing the respective management challenges between the Companies, which had a business relationship of trading chemical raw materials from the past, Nippon Shokubai, which holds a group mission, “
TechnoAmenity - Providing affluence and comfort to people and society, with our unique technology,” and
Sanyo Chemical, which holds a company motto,
“Let us contribute to building a better society through our corporate activities,” came to recognize not only the affinity level of their group mission and management motto, which is to contribute to society through corporate activities, is high, but the strengths and business challenges of the respective Companies are in a mutual complementary relationship.
With such recognition, the Companies were exchanging opinions on various options including a business integration, and have reached an understanding that executing a business integration with each other is the best way to make use of the Companies’ strengths, solve the business challenges and create a synergy effect. Consequently, the Companies came to agree to move ahead with the consideration of a business integration by the Companies and entered into the Basic Agreement concerning the consideration of a business integration today.
Basic Strategies for Post-Business Integration
In the Business Integration, the integrated holding company after the Business Integration (the “Integrated Holding Company”) will be in charge of operation and management of the entire cooperate group, consisting of the two Companies and their subsidiaries (the “Integrated Group”).
Toyotsu Chemiplas' Range of Products
Source: Sanyo Chemical Industries