2020 - 2021 Exhibitions
Tie-ups: Lotte Chemical takes minority stake in Showa Denko
South Korean giant Lotte Chemical has invested around US$132 million to acquire a 4.46% stake in Japanese chemical company Showa Denko. The share purchase was carried out in two phases between March and April, said Lotte Chemical.
The move is seen as reflecting the South Korean group’s intention to take over Japanese chemical companies with strong technologies for its future growth, according to various news reports.
Showa Denko is a medium-sized chemical company with strengths in semiconductor materials. In 2019, it went head-to-head with Lotte Chemical in acquiring Hitachi Chemical, a subsidiary of Hitachi Ltd that has battery cathode material technology. Showa Denko recently completed the 87.61% acquisition in Hitachi Chemical for about US$7.9 billion.
Lotte Group Chairman Shin Dong Bin recently said that the group needs to collectively invest in fields in which it can achieve future growth, calling for bold investments in new businesses in the post-Covid-19 era.
Lotte Chemical posted US$70 million in operating loss in the first quarter of 2020, the first quarterly loss in eight years. The loss was especially seen in the aromatics business. On the other hand, the company posted US$33 million in operating profit in the high-tech material business.
(PRA)
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