Sumitomo Chemical to acquire Tanaka Chemical for JPY6.84bn.

Sumitomo Chemical, a Japanese diversified chemical company, agreed to acquire Tanaka Chemical, an R&D oriented company that develops cathode materials, for JPY6.84bn. Sumitomo Chemical determined that, rather than Tanaka Chemical continuing independent business operations as a listed company, it was necessary to transition, through making Tanaka Chemical its wholly-owned subsidiary, to an integrated management structure where Sumitomo Chemical would be able to provide close support for technological development and establishment of a business foundation without concern for conflicts of interest, thereby enabling (i) the acceleration of research and development and establishment of technologies based on existing outstanding technical capabilities regarding cathode materials to meet increasingly sophisticated demands from customers, (ii) improvement of profitability, (iii) stabilization of cash flow, and, when necessary, (iv) implementation of bold structural reforms.