Mitsui Chemicals and DBJ to buy JSR for $11.6 billion, filing shows

Mitsui Chemicals and the Development Bank of Japan will acquire chipmaking materials maker JSR from state-backed Japan Investment Corp for 1.84 trillion yen ($11.61 billion). The deal is one of the sector’s largest and could reshape Japan’s chip supply chain as the government seeks to strengthen the country’s competitiveness.

Mitsui Chemicals plans to raise up to 150 billion yen by selling shares to help fund the purchase. It will also take out a 1.64 trillion yen bridge loan, part of which is expected to be repaid through the share sale. The transaction is more than twice the size of Showa Denki’s $4.55 billion acquisition of Hitachi Chemical in 2020; Mitsui Chemicals shares fell about 13 per cent on Monday after dropping more than 10 per cent the previous week.