Mitsui Chemicals plans to buy JSR for 1.84 trillion yen (about $11.6 billion). The Development Bank of Japan will invest 200 billion yen (about $1.3 billion), while Mitsui plans a 1.64 trillion yen (about $10.4 billion) bridge loan and a share sale of up to 150 billion yen (about $949.7 million) to help fund the purchase.
Mitsui Chemicals announced on 9 November that it plans to buy JSR, a maker of chipmaking materials, from state-backed Japan Investment Corporation for 1.84 trillion yen (about $11.6 billion). The Development Bank of Japan will invest 200 billion yen (about $1.3 billion) in the transaction.
Japan Investment Corporation bought JSR for 900 billion yen (about $5.7 billion) in 2024, saying it planned to use the business to drive consolidation in semiconductor materials. The new transaction would expand Mitsui Chemicals' business in those materials.
Mitsui Chemicals plans to take out a 1.64 trillion yen (about $10.4 billion) bridge loan, a temporary loan to fund the purchase, and sell up to 150 billion yen (about $949.7 million) in shares to repay part of it. It also plans bank loans, debt issuance and mezzanine financing, a form of financing that combines features of debt and equity.
The development bank’s stake will be converted into preferred shares without voting rights. Reuters said market participants were questioning the business rationale and the heavy debt the price would bring.
Mitsui Chemicals shares fell 8.5% on 9 November, extending a decline after Reuters identified the company as the final buyer the previous week. Its market capitalization was 664.6 billion yen (about $4.2 billion) based on the preceding Friday’s closing price, LSEG data showed.
Mitsui Chemicals CEO Satoshi Ichimura said the purchase was intended to accelerate a change in the company’s mix of businesses, not just strengthen its semiconductor-materials operation. Mitsui said it targets 40 billion yen (about $253.2 million) in additional annual profit from the acquisition.
The temporary order freezes the defendants’ assets and puts the company under a receiver’s control. The FTC says consumers paid the defendants more than $20 million.
Shogo Ikeuchi, CEO of the seller’s private-equity arm JIC Capital, said the companies could create growth opportunities by drawing on each other’s technology, talent and business foundations. He cautioned that their strengths in different materials would not necessarily produce significant synergies immediately.
Ikeuchi said the fund considered seven or eight potential buyers in talks held since spring. Its main consideration was whether a buyer could provide a semiconductor-materials base supporting Japan in the years ahead.
Mitsui Chemicals plans to sell JSR’s life sciences unit and other non-core businesses to raise JSR’s value. It aims to restore a sound financial position within three years.
2 min
DC Studios has named Jeremy Latcham president and chief creative officer. James Gunn and Peter Safran are stepping down as co-presidents and returning to creative work. Latcham will oversee DC’s film, television and animation slate.
3 min
China will keep an additional 24% tariff on US imports suspended while a 10% tariff remains in place, extending a truce that was due to expire the following day.
2 min
