Mitsui Chemicals to buy JSR for $11.6 billion with DBJ backing

TOKYO, November 9 - Mitsui Chemicals and the Development Bank of Japan (DBJ) have agreed to purchase chipmaking materials company JSR from state-backed fund Japan Investment Corp (JIC) for 1.84 trillion yen, or $11.61 billion, according to a recently filed announcement. This substantial deal is poised to significantly alter Japan's chip supply chain as the government seeks to enhance its competitiveness within the industry.

The acquisition surpasses the previous record of Showa Denki's $4.55 billion purchase of Hitachi Chemical in 2020, with twice the amount. Mitsui Chemicals intends to finance the transaction by selling up to 150 billion yen worth of its shares and securing a bridge loan of 1.64 trillion yen, which will be partially repaid through the equity increase.

Consequently, Mitsui Chemicals' shares experienced a 13% drop on Monday, reaching approximately 1,500 yen each, following a more than 10% decline the previous week after Reuters initially reported Mitsui Chemicals as the successful bidder for JSR.