Japan’s Showa Denko plans asset sales after USD 8.7bn Hitachi Chemical acquisition – sources

10 April 2020 - 12:00 am UTC

Showa Denko [TYO:4004], the Tokyo-based chemical manufacturer, is preparing a slew of non-core business divestitures upon the successful completion of its JPY 964bn (USD 8.7bn) acquisition of Hitachi Chemical [TYO:4217], sources familiar with the situation said. The divestitures are expected to come from both companies, they noted.


There could be roughly 15 or more businesses, including subsidiaries and business units, at Showa Denko and Hitachi Chemical that overlap. It is widely expected that many non-core divestitures will come to the market at some point, a source said.

Other sources echoed this view, noting that a few sellside beauty parades had kicked off towards the end of last year and earlier this year, to appoint advisors for the eventual sale of certain non-core businesses. 
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– by Nozomi Toyama, Mai Mizuta, and Ryuya Shiga in Tokyo​