Sumitomo Chemical Company and Zeon Corporation will conduct a joint study on the possible consolidation of both of the companies’ Solution Styrene Butadiene Rubber (S-SBR) businesses.
Zeon and Sumitomo are looking into forming a new joint venture company where they will transfer all their and their subsidiaries’ current S-SBR operations to strengthen the S-SBR business.
The new partnership will accelerate new product development, enhance cost competitiveness and secure a stable product supply.
The current basic agreement is not legally binding. Both companies will discuss and agree on the particulars relating to the business consolidation and the details of the new joint venture company.
Legally-binding agreements will be settled after both companies finalise internal authorisation procedures. At the same time, necessary steps will be taken to obtain regulatory approvals and?clearances concerning the transaction both in Japan and abroad.
The completion of due diligence and studies on the envisaged business consolidation is expected by the end of September this year. The signing of the definitive agreements is expected by the end of December this year and the new formation of the company may be expected by April 2017.