Sumitomo Chemical Company and Zeon Corporation have reached a basic agreement to
commence a study on possible consolidation of the two companies' Solution Styrene
Butadiene Rubber "S-SBR" businesses.
Sumitomo Chemical and Zeon Corporation will look into forming a new joint venture
company for the S-SBR business and transferring their current relevant operations,
including those of their respective subsidiaries, to the new company, with the aim of
strengthening the S-SBR business through such concerted efforts as accelerating new
product development, enhancing cost competitiveness and securing stable supply of
product.
The basic agreement entered into this time is not legally binding. The two companies
will discuss and agree on particulars relating to the S-SBR business consolidation and
the new company to be incorporated. Legally-binding definitive agreements will be
inked after each company going through their internal authorization procedures. At the
same time, necessary steps will be taken to obtain required regulatory approvals or
clearance on the transaction both in Japan and overseas.