Lotte Chemical buys minority stake in Japanese peer Showa Denko for $132 mil.

22, May. 2020

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.

Photo by Hans Reniers on Unsplash
Photo by Hans Reniers on Unsplash