M&As: Sumitomo Chemical to acquire fully Tanaka Chemical; Element Solutions to acquire Micromax from Celanese for US$500 mn

Japan’s Sumitomo Chemical Co will make Tanaka Chemical Corporation a wholly-owned subsidiary through a simplified share exchange, effective January 30, 2026. Sumitomo’s stake will increase from 50.1% to 100%; with the deal set to address rising raw material costs and market pressure.

This move aims to strengthen Sumitomo’s position in the rechargeable battery market by leveraging Tanaka’s expertise in cathode materials, aligning with Sumitomo’s growth strategy and enhancing its technological capabilities in response to increasing demand for energy-efficient solutions, it adds.

Sumitomo Chemical operates in various sectors including Agro & Life Solutions, ICT & Mobility Solutions, Advanced Medical Solutions, and Essential & Green Materials.

Tanaka Chemical Corporation, established in 1957, specialises in functional chemical materials, particularly in cathode materials for rechargeable batteries, which are crucial for energy-saving and environmentally friendly vehicles.

In other news, chemical firm Element Solutions Inc (ESI) is to acquire Micromax from Celanese Corporation for approximately US$500 million in cash, subject to adjustments. The transaction is expected to close in the first quarter of 2026, subject to certain regulatory approvals and customary closing conditions. Upon the closing of the transaction, Micromax will become a part of ESI’s MacDermid Alpha Electronics Solutions business and will be reported within the company’s Electronics segment.

Micromax is a supplier of electronics inks and pastes designed for high performance electronics and known for durability, flexibility, and performance in harsh environments. The portfolio includes conductive, resistive, and dielectric thick film inks, as well as Low-Temperature Co-fired Ceramic (LTCC) materials for creating multilayer circuits.

Micromax provides solutions to customers across a diverse range of industries, including specialised end-markets such as aerospace, defence and healthcare. The business has a materials innovation platform for emerging growth applications, such as health wearables, low earth orbit satellites, electric vehicles, and data centres.

According to Element Solutions’ CEO Benjamin Gliklich, “Following this transaction, our Electronics segment will boast one of the broadest product portfolios across the electronics supply chain with sales of approximately US$2 billion.”

Gliklich continued, “Micromax’s portfolio aligns with our vision of offering the best products and solutions in our end markets and delivering exceptional value for our shareholders. The transaction meets our robust acquisition criteria and is consistent with our acquisition strategy of investing in areas we understand and growth businesses that we believe will thrive under our ownership.”

Based on projected 2025 results, Micromax is expected to be more than 5% accretive to ESI’s adjusted earnings per share and contribute approximately US$40 million to ESI’s adjusted EBITDA on a full-year basis at accretive metals-adjusted margins.

Element Solutions expects to fund the transaction using a combination of cash on hand and incremental debt. The company adds it continues to have substantial incremental capacity to deploy capital to further accelerate growth in earnings per share.

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