Mitsubishi to invest $90 million in Masan’s minerals business

29-Oct-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

Masan High-Tech Materials Corporation (MHT) on October 26 announced that it had signed definitive agreements to establish a strategic alliance in the tungsten industry with Mitsubishi Materials Corporation (MMC) to develop a leading, high-tech tungsten materials platform.

As part of the strategic alliance, MMC will acquire nearly 110 million newly issued ordinary shares via a private placement for a total cash consideration equivalent to $90 million. Upon completing the transaction, MMC will own 10 percent of the fully diluted share capital of MHT and become the second largest shareholder of the latter.

After the completion of the strategic investment agreement, the parties will discuss developing a separate business unit to strengthen and unlock synergies for each respective party’s mid-stream tungsten platform.

Following Masan’s deal to acquire the tungsten business from H.C Starck (HCS), a leading global mid-stream tungsten business, in June this year, MMC’s participation as a strategic partner is a validation of the management’s transformation into a vertically integrated high-tech tungsten platform.

Makoto Shibata, director and chief financial officer of MMC, said, “We have set the tungsten business including the cemented carbide tool business to be one of the major pillars of our growth strategy. I am excited about a new collaboration, which our investment in MHT will create and have a significant impact on our future.”

“Forging a strategic alliance with MMC will certainly accelerate our vision to become an end-to-end global high-tech industrial materials platform. [...] The alliance also positions MHT and HCS to build a mid-stream tungsten Asian franchise, which is the missing piece in our strategic puzzle. I am extremely excited and looking forward to developing a long-term, win-win partnership with MMC,” said Craig Bradshaw, chief executive officer of MHT.

Being a subsidiary of the Masan Group, MHT is a leading supplier of critical minerals including tungsten, fluorspar and bismuth. It is currently operating the world class polymetallic mineral resource and chemical processing plant in northern Vietnam.

Regarding the Mitsubishi Materials Group, it is an “integrated materials manufacturer”. The Group meets the needs of customers by providing basic materials such as copper and cement. It also manufactures and sells mechanical parts, electronic materials and components used in automobiles and home appliances.

https://english.thesaigontimes.vn/79136/mitsubishi-to-invest-us$90 million-in-masan%e2%80%99s-minerals-business.html

 


Category: Business, Vietnam

Print This Post