Views:4 Author:Site Editor Publish Time: 2020-05-27 Origin:Site
Lotte Chemical has invested 161.7 billion won to acquire a 4.46 percent stake in Japanese chemical company Showa Denko.
The move is seen as reflecting Lotte Group chairman Shin Dong-bin's intention to take over Japanese chemical companies with strong technologies.
Lotte Chemical bought Showa Denko shares in March and April. Showa Denko is a medium-sized chemical company with strengths in high value-added materials such as semiconductor materials. In 2019, it defeated Lotte Chemical in acquiring Hitachi Chemical, a subsidiary of Hitachi Ltd. which has battery cathode material technology.
Lotte chairman Shin said in an interview with the Nihon Keizai Shimbun in March, "There are many Japanese companies that cannot develop global businesses with their excellent technologies."
Lotte Chemical said in a conference call for its first quarter earnings announcement that it may consider acquiring companies to optimize its business portfolio. Its targets include not only companies with specialty products but also those with profitable general-purpose products.