Acquisition of Mitsubishi Rayon Co. by Mitsubishi Chemical Holdings Corp. is on the cards. The new giant that will emerge in a deal worth over US$2 bln, and help the Japanese major compete with rising rivals from China and the Middle East. The combined entity will propel the company as one of the world's top ten chemical makers with estimated revenue of about Y3.25 trillion. This step has been taken by Mitsubishi as Japanese petrochemical industry mull consolidation in a bid to counter the supply glut anticipated on mounting production in the Middle East and China.

Mitsubishi- Japan's top chemical maker, will launch a tender offer in the first 10 days of February for Y380 per share, after reviews by antitrust authorities in Japan and overseas. After completion of the offer and the settlement due by the end of March, Mitsubishi Chemical will buy the shares it still doesn't own in Mitsubishi Rayon via a stock swap in case it fails to buy all Mitsubishi Rayon shares through the tender offer.

Source: plastemart