Mitsubishi Chem Bids For Mitsubishi Rayon

In an anticipated move, Japan’s largest chemical company, Mitsubishi Chemical Holdings, has initiated a friendly bid to acquire all of the outstanding shares of Mitsubishi Rayon for about $2.6 billion. Mitsubishi Rayon has been the world’s largest producer of methyl methacrylate since it acquired its U.K.-based competitor Lucite for $1.6 billion earlier this year; it also produces carbon fiber and components for water treatment systems. It reported a net loss of $325 million on sales of $3.9 billion in the fiscal year that ended March 31. Mitsubishi Chemical has been making overtures toward Mitsubishi Rayon since the summer (C&EN, Aug. 17, page 9). The company says it is striving to build businesses that are competitive on a global basis. The firm notes that its core chemical business in Japan has been struggling because of declining domestic demand and increasing competition from producers in China and the Middle East.