Showa Sangyo Co., Ltd. entered into an agreement to acquire San-Ei Sucrochemical Co.,Ltd. from Mitsui & Co., Ltd. for ¥15 billion.
July 19, 2020
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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.
Showa Sangyo Co., Ltd. is a Japan-based company principally engaged in the manufacture and sale of flour milling, oils and fats, feed business, warehousing business, as well as real estate rental business. The Company operates through six business segments. The Flour Milling segment provides commercial flour, commercial premixes, frozen dough, frozen foods, bread and bran. The Oils and Fats segment provides edible oils, premixes, pasta, gift sets, soy protein and defatted soybeans. The Carbohydrate segment is engaged in the manufacture and sale of saccharified products and corn starch. The Feed segment provides mixed feed, plain feed, chicken eggs and other livestock products. The Warehousing segment is engaged in warehousing business including loading and storage. The Real Estate segment is involved in the leasing of buildings. In addition, the Company is engaged in insurance agency, automobile leasing and transportation business.