Zeon Corporation and Sumitomo Chemical Company are looking to consolidate their solution styrene butadiene rubber (S-SBR) businesses under one umbrella company. Two sides have reached a basic agreement to commence a joint study on possible consolidation of their S-SBR businesses.
Zeon Corporation and Sumitomo Chemical will look into forming a new joint venture company and will transfer their current S-SBR operations, including those of their respective subsidiaries, to the new company with the aim of strengthening the S-SBR business. This new partnership will accelerate new product development, enhance cost competitiveness and secure a stable product supply.
Currently the basic agreement is not legally binding. Both companies will discuss and agree on the particulars relating to the business consolidation and the details of the new joint venture company. Legally-binding agreements will be settled after both companies finalise internal authorisation procedures. At the same time, necessary steps will be taken to obtain regulatory approvals and clearances concerning the transaction both in Japan and abroad.
