Zeon Corp. (Tokyo, Japan; www.zeon.co.jp) and Sumitomo Chemical Co. (Tokyo; www.sumitomo-chem.co.jp) have reached a basic agreement to commence a joint study on possible consolidation of both companies’ Solution Styrene Butadiene Rubber (S-SBR) businesses.
Zeon Corp. and Sumitomo Chemical will look into forming a new joint venture company and will transfer their current S-SBR operations, including those of their respective subsidiaries, to the new company with the aim of strengthening the S-SBR business. This new partnership will accelerate new product development, enhance cost competitiveness and secure a stable product supply.
Currently the basic agreement is not legally binding. Both companies will discuss and agree on the particulars relating to the business consolidation and the details of the new joint venture company. Legally-binding agreements will be settled after both companies finalize internal authorization procedures. At the same time, necessary steps will be taken to obtain regulatory approvals and clearances concerning the transaction both in Japan and abroad.
Completion of due diligence and studies on the envisaged business consolidation is expected by the end of September 2016, with the signing of definitive agreements occurring by the end of December 2016. Formation of the new company is planned for April 2017