10 August 2009 08:14 [Source: ICIS news]
SINGAPORE (ICIS news)--Japan’s largest chemical producer Mitsubishi Chemical is on the prowl for mergers and acquisitions, with the bulk of its $2.6bn budget still unused, a company spokesperson told ICIS news on Monday.
Plastic resin maker Mitsubishi Rayon was reported to be the target, which Mitsubishi Chemical did not categorically deny.
Mitsubishi Rayon's shares soared more than 20% on Monday after Japanese newspaper Nikkei Business Daily reported that Mitsubishi Chemical plans to make a Y150-200bn ($1.5-2.0bn) tender on the company.
“We have nothing to disclose for the present,” said Toru Shokochi from Mitsubishi Chemical’s public affairs office.
Mitsubishi Rayon has yet to respond to ICIS news' queries.
“We are making various examinations on M&A according to the group’s mid-term management plan,” said Mitsubishi Chemical's Shokochi.
“We keep a budget for M&A for the fiscal years 2008-2010 of Y250bn,” said Shokochi, adding that “not much” of the available funds for M&A activities have been utilised.
Most Japanese companies end their fiscal years in the month of March.
($1 = Y97.57)
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