Mitsui Chemicals to Buy Chipmaking-Materials Firm JSR for $11.6 Billion

Mitsui Chemicals plans to acquire semiconductor-materials maker JSR from Japan Investment Corp. for 1.84 trillion yen, about $11.6 billion, in a deal that would expand its role in the chip supply chain.

The Development Bank of Japan will also invest 200 billion yen, with its stake to be converted into non-voting preferred shares. Mitsui Chemicals said it plans a share sale of up to 150 billion yen and a 1.64 trillion yen bridge loan as part of the financing.

JSR makes photoresists, the materials used to transfer tiny circuit patterns onto semiconductor wafers. Mitsui Chemicals already operates in chip materials and says the acquisition will help reshape its business portfolio.

The company plans to sell JSR's life-sciences unit and other non-core businesses as part of an effort to restore a sound financial position within three years.

Investors reacted cautiously to the financing burden, with Mitsui Chemicals shares falling 8.5% on Monday. The announced acquisition is a planned transaction, not a completed transfer of ownership.