MENU

Ube Industries, JSR Corporation, and Mitsubishi Rayon Reach Basic Agreement to Start Negotiation for Merger of Subsidiaries in ABS Resin Business

May 9, 2016

TOKYO, May 9, 2016 _ Ube Industries, Ltd., JSR Corporation, and Mitsubishi Rayon Co., Ltd. today announced that they have reached basic agreement to start negotiation for the merger of their respective subsidiaries in the ABS resin business. The merger concerns Techno Polymer Co., Ltd., a wholly-owned subsidiary of JSR, and UMG ABS, LTD., which is equally owned by Ube Industries (50%) and Mitsubishi Rayon (50%). The details of the basic agreement are as follows.

1.Details of Basic Agreement

  1. Ube Industries, JSR, and Mitsubishi Rayon have agreed to negotiate in good faith to conclude a merger agreement and shareholders agreement between Techno Polymer and UMG ABS, seeking to reach a final agreement by October 31, 2016. The main purpose of the merger is to optimize operations, improve manufacturing efficiencies, and secure cost competitiveness for the ABS resin business, in order to secure the stable supply of products in Japan and expand sales in global markets, amid an increasingly severe business environment.
  2. The basic agreement is not a legally binding agreement. Under the basic agreement, the parties will discuss concrete details regarding a business merger including the percentage of ownership in the merged company and name of the new company. The parties will then gain approval from their respective Boards of Directors and carry out other necessary procedures to reach a legally-binding final agreement.
  3. Schedule
    i) Conduct due diligence, and investigate and study the benefits of the merger: May-September 2016
    ii) Target date of concluding final agreement: October 31, 2016
    iii) Target date of merger: October 1, 2017
    The procedure for this business merger will be conducted while submitting required notifications to the government in and outside of Japan including the Japan Fair Trade Commission.

2.Data for Companies Subject to Merger (As of March 31, 2015)

Company Name Techno Polymer Co., Ltd.
Location Minato-ku, Tokyo
President Yasuki Sajima, Representative Director
Business Description Manufacturing, processing, sales, and R&D for styrene resins (ABS, AS, AES, ASA, and other polymer alloys)
Capital Stock 3,000,000,000yen
Established July 1, 1996
Shares Issued 60,000
Fiscal year-end March 31
Shareholders JSR (100%)
Non-Consolidated Earnings and Financial Data for Last Three Years (Million Yen) Fiscal Year : Non-consolidated net sales
Fiscal Year Ended March 31, 2013 : 42,497
Fiscal Year Ended March 31, 2014 : 44,556
Fiscal Year Ended March 31, 2015 : 42,662
Company Name UMG ABS, LTD.
Location Chuo-ku, Tokyo
President Yasuaki Ii, Representative Director
Business Description ABS resin business (compound products using ABS, ASA, SAN, and AES polymers; alloy products containing other resins)
Capital Stock 3,000,000,000yen
Established April 1, 2002
Shares Issued 2,000
Fiscal year-end March 31
Shareholders Ube Industries (50%), Mitsubishi Rayon (50%)
Non-Consolidated Earnings and Financial Data for Last Three Years (Million Yen) Fiscal Year : Non-consolidated net sales
Fiscal Year Ended March 31, 2013 : 36,834
Fiscal Year Ended March 31, 2014 : 41,168
Fiscal Year Ended March 31, 2015 : 42,349

3. Future Outlook

Matters for disclosure in relation to the merger will be promptly disclosed as details are finalized.

Contact

For inquiries please contact
  • Ube Industries, Ltd.
  • Investor Relations & Public Relations Department
  • Corporate Planning & Administration Office
  • Seavans North Building, 1-2-1 Shibaura, Minato-ku, Tokyo 105-8449
  • Phone : +81-3-5419-6110
  • Contact us by Internet.
  • JSR Corporation
  • Corporate Communications Department
  • Phone : +81-3-6218-3517
  • Mitsubishi Chemical Holdings Corporation
  • Public Relations and Investor Relations Office
  • Phone : +81-3-6748-7120