JAPAN: Cosmo announces share acquisition of Maruzen Petrochemical Co. Ltd.

Cosmo Energy Holdings Co. Ltd. (CEH) on 11 Mar 2016 announced to determine a conversion of Maruzen Petrochemical Co, Ltd. (MPC) into a consolidated subsidiary through acquisition of one of outstanding shares from its existing shareholders with respect to "Submission of Notification to the Japan Fair Trade Commission in relation to the Intention of Share Acquisition of Maruzen Petrochemical Co. Ltd.”

MPC owns and operates one of the most competitive naphtha crackers in Japan but the petrochemical industry faces increasing competition in the future for reasons such as the North American and Chinese competitors producing products from low cost feedstock, slowing demand growth in China and the declining domestic demand, CEH observed.

Under such business environment, this acquisition will allow CEH to optimize its petroleum and petrochemical business operations, further strengthening its cost competitiveness. Furthermore, the transaction leads to the possibility of increasing the cost competitiveness for the whole industrial zone in the area.

Maruzen operates a 525,000 t/y naphtha cracker in Chiba, eastern Japan, next to Cosmo's oil refinery.

Source: Cosmo Energy Holdings, Tokyo; 11 Mar 2016

(Syed Rashid Ali, Karachi, Pakistan)