Mitsubishi Rayon Co., Ltd. (Japan), a leading acrylics manufacturer in Asian markets, confirmed that it has received all necessary regulatory approvals for its proposed acquisition of Lucite International Group Ltd. (UK) pursuant to the Share Purchase Agreement dated November 11, 2008. Mitsubishi Rayon expects to close its acquisition of Lucite - the world's largest manufacturer of methyl methacrylate (MMA) - by the end of May 2009. On November 11, 2008, Lucite announced its agreement to be acquired by Mitsubishi Rayon for a total cash consideration of approximately US$1.6 bln.
The acquisition will make Mitsubishi Rayon the global leader in MMA market and consolidate its position as the leading acrylics manufacturer in the fast growing Asian markets. Lucite owns the new low cost and proprietary MMA production route, known as Alpha technology which fundamentally changes the economics of MMA manufacturing. Post acquisition, Mitsubishi Rayon aim to lift its annual sales to approximately ¥600 bln, putting it well on the way towards achieving its target of ¥1 trillion annual sales.