Sumitomo and Zeon Study Rubber Merger
Japanese firms Sumitomo Chemical and Zeon Corporation have agreed to study a possible consolidation of their solution styrene-butadiene rubber (S-SBR) businesses. While this agreement is not legally binding, both companies will discuss and agree the details of a potential merger. The plan is to form a new joint venture company which will comprise their current S-SBR operations and those of their respective subsidiaries.
The aim is to strengthen the business by accelerating new product development, enhancing cost competitiveness and securing stable supply. Legally binding definitive agreements will be signed after Sumitomo Chemical and Zeon have completed their internal authorization procedures. At the same time, steps will be taken to obtain the necessary regulatory approvals or clearance of the deal both in Japan and overseas.
The current schedule envisages completing due diligence and studies by the end of next month, with definitive agreements signed by the end of December. It is anticipated that the new company will be formed in April 2017.
