Mitsui Chemicals Acquires JSR for 1.8 Trillion Yen

Mitsui Chemicals, Inc. entered a deal on Monday to acquire semiconductor materials manufacturer JSR from JIC Capital for 1.8 trillion yen, or approximately $11.6 billion. The acquisition is designed to expand Mitsui's chipmaking offerings and establish the combined entity as the largest semiconductor materials maker in Japan by sales.

To fund the purchase, Mitsui Chemicals secured 1.64 trillion yen in bridge loans from its main banks and a 200 billion yen equity investment from the venture capital arm of the Development Bank of Japan. The company expects the deal to generate an annual incremental profit of 40 billion yen by 2035.

Mitsui Chemicals noted that its debt to core earnings ratio will temporarily exceed 4.0 after the closing. To maintain its credit rating, the company intends to refinance the bridge loan within one year.