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Sojitz signs agreement to acquire 5% of Vietnam tungsten supplier Masan High-Tech Materials
Sojitz Corporation has signed a memorandum of understanding to acquire a 5 per cent stake in Vietnamese tungsten producer Masan High-Tech Materials. The proposed investment would give the Japanese trading company a share in a major supplier of a metal used in industrial applications.
The stake would be bought from Masan Horizon, a wholly owned subsidiary of Masan Group, for no less than the price paid by Elmet Group in its recent investment. In September, Elmet agreed to acquire 4.99 per cent of Masan High-Tech Materials at a valuation of about US$2.5 billion, putting that stake at roughly US$125 million. The parties aim to sign final agreements by the end of the year, subject to due diligence and regulatory approvals.
In short
- Sojitz plans to acquire 5 per cent of Masan High-Tech Materials.
- The stake will be bought from Masan Horizon.
- Final agreements are targeted by year-end, subject to approvals.
Steelman: both sides, in good faith
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The case for
The proposed stake could give Sojitz a strategic foothold in a major tungsten supplier and help strengthen links between Japanese industry and Vietnam. At a price no lower than Elmet’s recent investment, the deal may also provide Masan with capital and a reference valuation, while broadening its investor base.
The case against
A minority stake may give Sojitz limited influence over the supplier while exposing it to the commercial and geopolitical risks of the tungsten market. The price floor based on Elmet’s recent investment could also constrain negotiations if circumstances or the company’s prospects change before final agreements are reached.
Explained simply
Tungsten is a hard metal used in industrial tools and equipment, including products that need to withstand high heat or wear. Vietnam is a significant source of tungsten, and Masan High-Tech Materials is a Vietnamese producer and processor of the metal.
Sojitz is a Japanese trading company that invests in businesses and connects suppliers with customers. Masan High-Tech Materials is part of Masan Group, a Vietnamese company whose subsidiary Masan Horizon holds shares in it; Elmet Group, a US-based tungsten products maker, is another investor.
A stake gives an investor a share of a company and may help build closer links between suppliers and customers. The proposed investment matters because tungsten is an important industrial material, while ownership and supply relationships can affect how companies secure access to it.