Japan Prepares for Sumitomo-Mitsui Merger.(Sumitomo Chemicals, Mitsui Chemicals)(Brief Article)

Chemical Week, February, 2001 by MOLLET, ANDREW

Other Big Deals are Unlikely

CHEMICAL INDUSTRY consolidation has shifted up a gear in Japan with the recent announcement that Sumitomo Chemical and Mitsui Chemicals plan to merge (CW Nov. 22/29, 2000. p. 9). It will be the industry's biggest chemical merger and the first between companies from rival keiretsu corporate families. The last big chemical merger in Japan was between Mitsui Sekka and Mitsui Toatsu that created Mitsui Chemicals in 1996. The Sumitomo-Mitsui deal is not likely to lead to further megamergers, however, because of a lack of suitable candidates, industry sources say.

Sumitomo and Mitsui will start by combining their respective polyolefin businesses into a 50-50 joint venture by October. The companies plan to complete the full...

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