NIPPON SHOKUBAI CO., LTD. (4114, hereafter “NIPPON SHOKUBAI”) announced that it will acquire shares of Emulsion Technology Co., Ltd. (hereafter “E-TEC”), making it a subsidiary. This transaction aims to drive NIPPON SHOKUBAI’s business growth in diverse markets by leveraging E-TEC’s technological expertise and business assets. The share transfer agreement was signed between NIPPON SHOKUBAI and JSR Corporation (hereafter “JSR”).
Purpose of M&A
Founded in 1941, NIPPON SHOKUBAI is a chemical company with core expertise in organic synthesis based on oxidation catalyst technology. Since 2022, under the long-term vision “TechnoAmenity for the Future,” the company has focused on transforming its portfolio toward growth markets and expanding its "Solutions Business," which specializes in solving customer challenges.
With the acquisition of E-TEC, NIPPON SHOKUBAI plans to strengthen its portfolio in the construction chemicals market, particularly by utilizing E-TEC’s “emulsion polymerization technology” and “compounding technology” to enhance product proposal capabilities. NIPPON SHOKUBAI also aims to further increase corporate value through this collaboration with E-TEC.
The acquisition requires a preliminary condition of an “absorption-type split,” in which E-TEC’s fine chemicals business will be transferred to a new subsidiary of JSR. Additionally, completion of this transaction is subject to the necessary legal procedures and regulatory approval under antitrust laws.
Schedule
Board Resolution Date: November 12, 2024
Agreement Signing Date: November 12, 2024
Share Transfer Execution Date: April 1, 2025 (planned)
