Mitsubishi Chemicals Pays $1.04 Billion for Taiyo Nippon Control

Mitsubishi Chemical Holdings Corp., Japan’s largest producer of chemicals, will pay as much as 107 billion yen ($1.04 billion) to take control of industrial gas-making unit Taiyo Nippon Sanso (4091) Corp.

The offer to buy as many as 104 million shares for 1,030 yen apiece will begin in early November and was approved by both companies, Tokyo-based Mitsubishi Chemical said today in a statement to the Tokyo Stock Exchange. Mitsubishi Chemical’s stake in Taiyo Nippon will increase to 51 percent from 27 percent after the purchase.

The offer represents a 28 percent premium to Taiyo Nippon’s closing price yesterday, before Nikkei reported the plans. Mitsubishi Chemical will keep Taiyo Nippon listed in Tokyo and allow it to retain independent management, according to the statement today.

An alliance between the two companies will help strengthen their presence in the U.S. and Asia, Mitsubishi Chemicals said. The companies can integrate their supply chain and work closely on research and development, the chemicals maker said.

To contact the reporter on this story: Yuriy Humber in Tokyo at yhumber@bloomberg.net

To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net Indranil Ghosh, Abhay Singh

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