Showa Denko Said to Be Preferred Bidder for Hitachi Chemical
- Nikkei reported that Showa will make offer for entire company
- Hitachi Chemical shares jump in early trading in Tokyo
Japan’s third-largest diversified chemicals maker Showa Denko K.K. is the preferred bidder for a stake in smaller rival Hitachi Chemical Co., a person with knowledge of the matter said, a deal that the Nikkei newspaper said could be worth as much as 900 billion yen ($8.2 billion).
Hitachi Chemical jumped as much as 17% in Tokyo, the biggest gain since March, after Showa Denko issued a statement saying it is considering an acquisition, adding that it hasn’t decided yet on buying the stake from parent Hitachi Ltd. Hitachi Chemical’s board agreed to negotiate with Showa Denko in what will probably be a tender offer that will include the rest of the company’s publicly listed shares, said the person, asking not to be identified because the information isn’t public.