Mitsui, Idemitsu, Sumitomo Enter Agreement For Integration Of Sumitomo PP, LLDPE Into Prime Polymer

(RTTNews) - Mitsui Chemicals (4183.T), Idemitsu Kosan (I7B.F, 5019.T), and Sumitomo Chemical (4005.T) previously have entered into a Memorandum of Understanding regarding the integration of the polyolefin business operated by Prime Polymer, a joint venture between Mitsui and Idemitsu, with Sumitomo Chemical's polypropylene business and linear low-density polyethylene business in Japan. The companies have now concluded a business integration agreement and a joint venture agreement regarding the business integration.

Sumitomo Chemical and PRM have agreed that, of the two companies' PO businesses, Sumitomo Chemical's PP business and LLDPE business in Japan will be subject to the business integration. Sumitomo Chemical will transfer its businesses subject to the business integration to PRM through a two-phase absorptiontype split. In consideration for Absorption-Type Split Phase One, Sumitomo Chemical will acquire equity shares equivalent to a 20% stake in PRM. PRM will become a joint venture company in which Mitsui holds a 52% stake, Idemitsu holds a 28% stake, and Sumitomo Chemical holds a 20% stake.