May 18 2004
Japan’s leading chemical manufacturer Mitsui Chemicals and independent petroleum company Idemitsu Kosan Co and its subsidiary Idemitsu Petrochamical Co have reached a basic agreement today on establishing a joint venture company consolidating their polyolefins businesses in April 2005, subject to approval by the Japanese Fair Trading Committee with whom they are already holding consultations, they said in a joint announcement.
Mitsui and Idemitsu had entered into a tripartite Letter of Intent on February 3, 2004, outlining their agreement to conduct a comprehensive study aiming for a co-imperative agreement. Under the Letter of Intent, the parties have been conducting, among other things, a study regarding the polyolefins business consolidation.
The basic mission of the new company forming a part of the comprehensive arrangement between the two companies, will be to strategically consolidate the two parties’ worldwide polyolefins businesses in all aspects of production, sales and research, and to pursue maximisation of shareholder value through expanded business scale and synergy effect.
For more information on polyolefins, click here.