Mitsubishi to buy Japanese gases specialist

Japanese chemicals conglomerate Mitsubishi Chemical Holdings has issued a tender offer to increase its share in Taiyo Nippon Sanso to a 51% controlling stake. The planned purchase – which has been agreed by Taiyo’s board and has regulatory approval – will cost around ¥107 billion (£600 million).

Taiyo is an industrial gases specialist, of which Mitsubishi has held a significant share since its formation in 2004. Mitsubishi has now decided to take control of the company and form a ‘business alliance’ as part of a consolidation effort that will help both firms respond to ‘changes in the global competitive environment’, Mitsubishi stated in the offer announcement.

The deal is part of an ongoing restructuring and consolidation within the Japanese chemicals sector, as it struggles with economic reform and devalued exports from the weakness of the Yen.