Lion Corp. said Tuesday it has agreed to buy South Korean firm CJ Corp.'s household goods operations by the end of this year as part of its growth strategy in Northeast Asia.
CJ will spin off its operations of household chemicals such as detergents, toothpaste, soap and shampoos into a wholly owned subsidiary in which Lion will take an 81 percent stake by the end of December, Lion said.
The new company, whose name has yet to be determined, will be set up in mid-December following a formal contract that Lion and CJ plan to conclude in mid-September.
Lion said it decided to take the equity state in the spinoff, offered by CJ as part of the South Korean firm's business restructuring efforts, because it is in line with Lion's core business areas of household products, pharmaceuticals and international business.