The potential transaction would rank among the largest ever recorded in Japan's chemical industry, eclipsing the 2020 takeover of Hitachi Chemical by Showa Denko. The prospective buyer is actively seeking to expand its footprint in semiconductor materials to meet growing technological demand. However, financing the acquisition may require significant resources given that the buyer held 876.4 billion yen in interest-bearing debt as of late June. A final determination regarding the multibillion-dollar transfer could emerge before the end of the month.
Key points
State investors are pivoting from an industry-wide consolidation strategy toward a lucrat…: State investors are pivoting from an industry-wide consolidation strategy toward a lucrative domestic sale.
Rising global demand for artificial intelligence infrastructure is significantly lifting…: Rising global demand for artificial intelligence infrastructure is significantly lifting the value of semiconductor suppliers.
The transaction would surpass the 2020 Showa Denko acquisition to rank among Japan's larg…: The transaction would surpass the 2020 Showa Denko acquisition to rank among Japan's largest chemical deals.
Sources checked by our analysis pipeline: 1
TOKYO, Nov 4 : Japan Investment Corp (JIC), a state-backed fund, plans to sell chipmaking materials maker JSR to Mitsui Chemicals in a deal that could exceed 1.3 trillion yen ($8.20 billion), two people familiar with the matter said.
A decision could come as soon as within the month, one of the people said. Both people declined to be identified as the information is not public.
JIC, JSR and Mitsui Chemicals did not reply to a request for comment.
Reuters, which previously reported JIC is considering selling JSR, is reporting the final buyer for the first time.
JIC acquired JSR for some 900 billion yen two years ago and had said it planned to use the business to drive consolidation in the semiconductor materials sector.
The fund will instead sell JSR to a domestic chemical major as it takes advantage of a lift in the valuation of chip-related firms due to a boom in AI investment.
JSR, established in 1957, is a leading manufacturer of photoresists which are used to transfer circuit patterns onto semiconductor wafers.
Japanese fund JIC is planning to sell JSR to Mitsui Chemicals, according to sources familiar with the matter. Further details regarding the terms or timeline of the prospective sale have not been disclosed.
Strong quarterly financial results have eased market skepticism surrounding the endurance of the broader artificial intelligence sector. Advanced Micro Devices demonstrated tangible revenue gains from its AI initiatives despite a difficult operating environment for tech firms. The chipmaker's performance and subsequent optimistic financial forecast helped lift its shares during extended trading.
The industrial manufacturing giant is confronting massive legal liabilities tied to chemical exposure claims across the country. This significant charge highlights the mounting corporate accountability surrounding historical environmental and health damages. The substantial financial obligation will notably impact the company's bottom line moving forward.