* Thought to be worth 20-30 billion yen (US$224-336 million), the order is the first Mitsubishi Heavy has received for a large-scale facility of this nature in 10 months.

Rumor (August 10, 2009):

According to Reuters, the Nikkei business daily reported that MCHC may acquire MRC for a consideration of approximately $2,100 million.

Deal Value (US$ Million) 2555.06
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-11-19

Deal Participants

Target (Company)   Mitsubishi Rayon Co., Ltd.
Acquirer (Company) Mitsubishi Chemical Holdings Corporation

Deal Rationale

The acquisition will allow the MCHC Group to expand its corporate scale to better respond to an era of global competition. The MCHC Group will also acquire businesses that include the carbon fiber and composite materials businesses, for which demand is expected to expand rapidly, as well as the water treatment business. Consequently, the MCHC Group will be able to accelerate its current shift toward value businesses and anticipates synergies in carbon fiber and composite materials, water treatment and such specialty chemicals as additives and coatings. MCHC also expects to realize cost synergies through the integration of logistics, purchasing and procurement, and business bases as well as through the integration of similar functions carried out by affiliated companies. Also, the addition of MRC and its business foundations in Asia, Europe and the United States will enable the MCHC Group to further bolster and accelerate the development of its global business operations.

Through the acquisition, the company aims to shrink its commodity-grade petrochemical operations, which are facing intense competition from Middle Eastern and Chinese rivals, while embracing Mitsubishi Rayon's carbon fiber and water treatment membrane businesses.

By becoming a Mitsubishi Chemical subsidiary, Mitsubishi Rayon "aims to strengthen our business foundation, including our financial health, to drive global business expansion", president Masanao Kanbara said.

The company has become the world's top acrylic resin material producer, following the acquisition of U.K.'s Lucite International Group Ltd. in May. But the 150 billion yen purchase also put a dent in Mitsubishi Rayon's financial health.

According to Mitsubishi Chemical's announcement Thursday, its tender offer for a 100 per cent stake in Mitsubishi Rayon will run from early February until the end of March. At 380 yen (US$4.27) per share, the offering price is 40 per cent higher than Mitsubishi Rayon's closing price of 271 yen Wednesday. Any shares in Mitsubishi Rayon that Mitsubishi Chemical does not own at the close of the tender offer will be converted into Mitsubishi Chemical shares via a stock swap.

The merger of Mitsubishi Chemical and Mitsubishi Rayon will create the world's sixth-biggest comprehensive chemical firm, passing U.S. firm DuPont. The two Mitsubishi group firms' combined sales would come to around 3.5 trillion yen annually.

(Nikkei) rw

According to Mitsubishi UFJ Financial Group, as a part of preparation for the strategic alliance with Morgan Stanley, the initiative will separate the supervising functions and the business execution functions with respect to all the securities business operations within the Mitsubishi UFJ Securities group of companies in order to concentrate each function to facilitate more timely decision making.

The preparatory company will be established, capitalized 100% by Mitsubishi UFJ Securities. After registration to engage in financial instruments business and receiving other necessary permits and approvals, through a company split, the preparatory company (whose corporate name is planned to be changed to Mitsubishi UFJ Securities Company) will succeed to the business operations currently being undertaken by Mitsubishi UFJ Securities, and the preparatory company and the divisions of Morgan Stanley Japan Securities Company, such as the investment banking divisions, will be consolidated.

Mitsubishi UFJ Securities will become an intermediate holding company, and change its corporate name to Mitsubishi UFJ Securities Holdings Company.

Mitsubishi UFJ Securities Holdings Company will hold current domestic and foreign subsidiaries and affiliated companies of Mitsubishi UFJ Securities.

Following establishment of the preparatory company, Mitsubishi UFJ Securities and the preparatory company will enter into a company split agreement providing to the effect that the current business operations of Mitsubishi UFJ Securities shall be succeeded to by the preparatory company through the split.

The agreement will be approved by the extraordinary meeting of shareholders of the two companies. The effective date of the split is planned for April 1, 2010, subject to all the necessary permits and approvals being granted and all other actions and procedures necessary for the split being taken.

As at the implementation of split, Mitsubishi UFJ Securities will not transfer its obligation under any outstanding notes (except for commercial papers (short term notes)) issued by it and any notes (except for commercial papers (short term notes)) to be issued by it before the split to the preparatory company.

Mitsubishi UFJ Securities will continue to hold the status and rights and obligations as the issuer of such notes after the split becoming effective.

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