Ube Industries, Ltd. (Tokyo, Japan; www.ube-ind.co.jp) and Mitsubishi Materials Corp., Ltd. (www.mmc.co.jp) announced that, based on a resolution of the companies’ respective Board of Directors meetings, they have signed aletter of intent to start specific discussions and study on the integration of their respective cement businesses and related businesses. The integration is to be implemented around April 2022. Moving forward, Ube Industries and Mitsubishi Materials will engage in specific discussions and study on the integration, and they plan to sign a definitive agreement for the integration in or around late September 2020.
Under the integration, Ube Industries and Mitsubishi Materials will direct cash flows generated from the cement business in Japan toward concentrated investment in businesses that are anticipated to generate growth in and outside of Japan. Through these efforts, Ube Industries and Mitsubishi Materials will endeavor to realize sustainable growth as corporations that are contributing to the development of social infrastructure and advancement of a recycling-oriented society, and to establish an optimal operational framework for both companies.
The scope of the integration is expected to encompass the cement and ready-mixed concrete businesses, limestone resources businesses, energy and environmental-related businesses, construction material businesses, and other related businesses of Ube Industries and Mitsubishi Materials, both in and outside of Japan.