Mitsui Chemicals signs agreement to take control of JSR

Mitsui Chemicals has agreed to buy control of JSR, the Japanese supplier of semiconductor photoresists and other electronic materials, from funds managed by JIC Capital. The Development Bank of Japan will invest alongside Mitsui. Under the proposed structure the bank would convert its common shares into preferred shares without voting rights, leaving Mitsui with all voting rights in JSR once the deal completes.

Mitsui puts the acquisition price at ¥1.84 trillion, comprising about ¥1.39 trillion of equity value and ¥448 billion of interest-bearing debt and other items. The equity figure includes the Development Bank of Japan’s ¥200 billion investment. JSR would become a consolidated subsidiary of Mitsui Chemicals, subject to competition and other regulatory clearances.

For the materials business, the transaction concerns products used at a tightly specified step in wafer fabrication. A photoresist’s response to exposure and development helps determine the pattern that will be transferred to the wafer. A formulation is qualified as part of that process, with the exposure and development settings and the characteristics of the intended pattern all affecting the result. That is why ownership of a photoresist supplier is relevant to the industry even when the announcement contains no change to a particular grade or manufacturing site.

JSR says it expects to continue its existing growth strategy and sees opportunities for joint development in semiconductor materials. Neither company has announced changes to specific grades, customer supply terms or production sites as part of the agreement.

Sources: JSR shareholder announcement; Mitsui Chemicals transaction disclosure.