Japan’s Mitsubishi Chemical to sell pharma business for $3.4 billion

SINGAPORE (ICIS)–Mitsubishi Chemical on Friday said that is selling its pharmaceutical unit Mitsubishi Tanabe Pharma Corp (MTPC) to US private equity firm Bain Capital for around yen (Y) 510 billion ($3.4 billion) as it seeks to focus on its core chemical business.

The sale is expected to be completed in April-September 2026, pending shareholder approval at Mitsubishi Chemical’s annual meeting scheduled in late June 2025.

“Changes in the industry and business structure have reduced the potential for synergies,” the company said.

“Large-scale investment is essential to strengthen Mitsubishi Tanabe Pharma’s R&D capacity and further growth, but such investment would not be a feasible option under our ownership.”

Proceeds from the sale of between Y200 billion-250 billion will be directed toward a combination of strategic priorities: new growth investments, returning value to shareholders, and reducing debt.

Some Y250 billion-300 billion has been designated for capital and financial investments focused on five key business areas under the company’s “KAITEKI Vision 35” initiative.

KAITEKI, a Mitsubishi Chemical concept, proposes a path to sustainable development, guiding solutions to environmental and social problems.

Among these priorities is the establishment of a stable supply platform for green chemicals, a goal that will be pursued through expanded collaboration with global partners.

Mitsubishi Chemical is also prioritizing eco-conscious mobility, focusing on development of a high-value-added carbon fiber chain to meet increasing demand for sustainable transportation solutions.

To facilitate progress in advanced data processing and telecommunications, the company plans to bolster the global expansion of its semiconductor precision cleaning technology.

It is also increasing the global capacity of its engineering plastic products to support the development of groundbreaking therapies.