9 May 2016
DETAILS
JSR Corporation, and
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,
(Manufacturing, processing, sales, and R&D
for styrene resins
(ABS, AS, AES, ASA, and other polymer alloys)
and
* UMG ABS, LTD.,
which is equally owned by
Ube Industries (50%) and Mitsubishi Rayon (50%),
(ABS resin business (compound products using
ABS, ASA, SAN, and AES polymers;
alloy products containing other resins)
The details of the basic agreement are as follows.
1.Details of Basic Agreement
- 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. - 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. - 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.
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
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
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