Showa Sangyo Co., Ltd. (TSE:2004) entered into an agreement to acquire San-Ei Sucrochemical Co.,Ltd. from Mitsui & Co., Ltd. (TSE:8031) for ¥15 billion on July 20, 2020. Under the terms, 0.02 million will be acquired as a part of the transaction. As on December 11, 2020, Showa Sangyo Co., Ltd. signed a change agreement and the date of execution of the share transfer has been decided to be December 24, 2020. San-Ei Sucrochemical reported total assets of ¥15.4 billion, sales of ¥14.6 billion, operating income of ¥874 million and net worth of ¥11.4 billion for the year ended March 2020.

The transaction is subject to antitrust approval. As per disclosure of December 11, 2020, Showa Sangyo Co., Ltd. stated that due to the fact that the examination by the Fair Trade Commission was longer than initially expected, the specific schedule was undecided, but Showa Sangyo Co., Ltd. has received a notification that the Fair Trade Commission will not issue an exclusion measure order. Since the prohibition period for stock acquisition stipulated in the Anti-Monopoly Law has passed, the stock transfer execution date was decided. As per disclosure of July 7, 2020, the transaction was expected to close on October 1, 2020. As on September 28, 2020, the deal will close within one month from the completion of the response to the examination by the Fair Trade Commission. The impact of the transaction on Showa Sangyo Co., Ltd.'s consolidated financial results for the fiscal year ending March 2021 will be minor.