Nippon Shokubai, Sanyo Chemical to Merge
Tokyo, May 29 (Jiji Press)--Nippon Shokubai Co. <4114> and Sanyo Chemical Industries Ltd. <4471>, Japanese superabsorbent polymer makers, said Wednesday that they have reached a basic agreement to merge operations.
They will establish a holding company in October 2020 to integrate operations, which will be followed by a full-blown merger in 2022.
The move is designed to cut costs and streamline overseas operations, an effort to better compete with foreign rivals.
"We will not only pursue scale but work on higher value-added products," Nippon Shokubai President Yujiro Goto told a press conference.
The merger "will allow us to pour more resources into new business areas," said Takao Ando, president and chief executive officer at Sanyo Chemical.
[Copyright The Jiji Press, Ltd.]