Lotte Chemical buys minority stake in Japanese peer Showa Denko for $132 mil.
SEOUL, NNA – South Korea’s Lotte Chemical Corp. has acquired a 4.46 percent stake in Japanese peer Showa Denko K. K. in a bid for future growth.
The share purchase worth 161.7 billion won ($132 million) was carried out in two phases between March and April, Lotte Chemical said Wednesday.
A Showa Denko spokesperson declined to comment on the deal.
Showa Denko completed their planned acquisition of an 87.61 percent stake in Hitachi Chemical Co., a Japanese chemical giant, for about 845 billion yen ($7.9 billion) through a tender offer on April 20.
The South Korean firm had bid for negotiation rights for the sale of Hitachi Chemical by its parent conglomerate Hitachi Ltd., according to a Yonhap News report.
Lotte Group Chairman Shin Dong Bin said at a board meeting on Wednesday that the group needs to collectively invest in fields in which it can achieve future growth, the report said.