Japan's Kaneka to expand in Europe as it reaches deal with Germany's Evonik to acquire latter's acrylic modifier and acrylic sol businesse

Liling Tan

TOKYO , June 24, 2011 (press release) – Kaneka Corporation (hereinafter Kaneka) and Kaneka Belgium N.V. (hereinafter Kaneka Belgium) have reached an agreement with Evonik Röhm GmbH（hereinafter Evonikof the Evonik Industries AG Group regarding the acquisition of Evonik’s acrylic modifier and acrylic sol businesses. The acquisition agreement was concluded on June 23. Details of the agreement are as follows.

Details

1. Objectives

Kaneka’s modifiers business has been growing with its global manufacturing and sales facilities in Japan, the United States, Europe and Asia. The acquisition agreement concluded on June 23 involving the acrylic modifier and acrylic sol businesses of Evonik is designed to expand Kaneka’s operations and strengthen the competitive advantage of this business in Europe while also promoting its ongoing development through the acquisition of promising technology and improved access to local markets.

2. Details of transfer

(1) Businesses to be acquired
The acrylic modifier and acrylic sol businesses of Evonik will be acquired. The acquisition encompasses tangible fixed assets associated with the relevant operations of Wesseling site located on the outskirts of Cologne Germany, and other assets, as well as employees of the manufacturing department and separate contracts with third parties.

(2) Method of acquisition
Kaneka Belgium will carry out sales and production of the acquired businesses while setting up a new company, as detailed below, at the Wesseling site of Evonik to inherit tangible fixed assets and manufacturing department employees from Evonik.

Outline of the New Company
- Company name: Kaneka Modifiers Deutschland GmbH (provisional title)
- Address: Brühler Strasse 2, 50389 Wesseling, Germany
- Representative: To be confirmed
- Business: Manufacture of chemical products (including commissioned production), sales, R&D, purchasing
- Capital: 3 million Euros
- Date of establishment: Mid-July 2011 (projected date)
- Main shareholder: Kaneka Belgium (100%)

3. Projected timetable of events
June 23, 2011: Conclusion of acquisition agreement
Mid-July 2011 (projected date): Establishment of Kaneka Modifiers Deutschland GmbH (provisional title)
End July 2011 (projected date): Transfer of operations
Early August 2011 (projected date): Kaneka Modifiers Deutschland GmbH (provisional title) commences operations

This acquisition is subject to the approval by the German Federal Cartel Office in accordance with German competition law i.e. Act Against Restraints of Competition.

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