Business integration of two chemical manufacturers canceled October 21 23:01 due to corona impact
Two chemical manufacturers headquartered in Osaka and Kyoto have announced that they will cancel the previously agreed management integration, saying that the business environment is rapidly deteriorating due to the effects of the new coronavirus.
The spread of infection has undermined the integration strategy of companies.
This was announced on the 21st by "Nippon Shokubai" headquartered in Osaka City and "Sanyo Kasei Kogyo" headquartered in Kyoto City.
The two companies are the world's top and fifth companies in the manufacture of water-absorbent resins for diapers, respectively, and had a basic agreement in May last year to integrate their businesses in order to increase their competitiveness.
After that, due to the spread of the new coronavirus infection and the deterioration of the world economy, the integration period was postponed from this month to April next year.
However, even after that, it was difficult to forecast the business results of both companies, and Nippon Shokubai made a downward revision of its business results earlier this month, so the integration ratio had to be reviewed, and the assumption was broken. It means that we have reached a conclusion.
The spread of the new corona has undermined the corporate integration strategy.
The two companies commented, "We have come to realize that it has become difficult to implement business integration due to the rapid deterioration of the surrounding environment, such as increasing uncertainty about the future of product demand."