Tokyo - Zeon Corp. and Sumitomo Chemical Co. are planning a joint study on the possible consolidation of their solution styrene butadiene rubber (S-SBR) businesses, by next April, the companies have announced.
The study will examine the viability of transferring their respective SSBR operations, and those run by subsidiaries, into a new joint venture company, said a 4 Aug statement
“This new partnership will accelerate new product development, enhance cost competitiveness and secure a stable product supply,” according to the Japanese polymer makers.
Sumitomo and Zeon have, to date, reached only a “basic agreement” for the study, which is not legally binding. Their next target is to agree 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 authorization procedures. At the same time, necessary steps will be taken to obtain regulatory approvals and clearances concerning the transaction both in Japan and abroad,” they stated.
Under a tentative schedule, the companies envisage completing due diligence and studies on the proposed business consolidation by the end of September, signing definitive agreements by the end of December and forming the SSBR venture in April 2017.