Mitsubishi Chemical Holdings Corp. is mulling acquiring Mitsubishi Rayon Co. through a tender offer worth up to ¥200 billion, sources said Monday.
Combined sales of the two firms, which have no capital ties, would be about ¥3.2 trillion, far larger than those of No. 2 chemical maker Sumitomo Chemical Co. at ¥1.79 trillion in fiscal 2008.
The tender offer, which would amount to obtaining all Mitsubishi Rayon shares, would be aimed at strengthening their businesses through areas of common potential growth, including carbon fiber, the sources said.
"It is true that we are making various examinations into M&As (mergers and acquisitions) according to the group midterm management plan, but we have nothing to disclose for the present," Mitsubishi Chemical said in a statement.
Mitsubishi Rayon said nothing has been decided.
The company has been suffering from sluggish earnings amid tough competition in the general petrochemical product market from rivals in China and the Middle East. To survive the tough environment, Mitsubishi Chemical has unveiled a plan for M&As worth ¥250 billion — with a focus on highly functional materials — for a three-year period through fiscal 2010.
Mitsubishi Rayon is engaged in carbon fiber for vehicles and is known for manufacturing various chemicals, including methyl methacrylate monomer, a type of acrylic resin that is an important constituent of various compound chemical products.