(Bloomberg) — Taiyo Holdings Co. is exploring a potential combination with larger peer DIC Corp. in a move that would consolidate two major Japanese chemical companies, according to people familiar with the situation.
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Taiyo is considering teaming up with private equity firm Japan Industrial Partners Inc. for the potential deal, the people said, asking not to be identified because the matter is private. The Tokyo-based companies are working with advisers as they take preliminary steps in evaluating a possible deal, the people said.
Taiyo shares rose 32% in 2024, giving the company a market value of about $1.5 billion. DIC is Taiyo’s biggest shareholder, with a stake of more than 19%. DIC climbed 22% last year, valuing it at $2 billion. Hong Kong-based activist investor Oasis Management Co. is its second-biggest shareholder with an 11.5% holding.
Considerations are ongoing and may not result in a deal, the people said. Representatives for Taiyo, JIP and DIC declined to comment.
DIC bought a 19.5% voting rights stake in Taiyo in 2017 as part of an equity offering and alliance between the two companies.
Taiyo makes chemical products used in the electronics industry, including printed circuit boards, according to its website. It has also expanded into pharmaceuticals and other areas. DIC specializes in printing inks, organic pigments and resins.
–With assistance from Hideki Suzuki, Koh Yoshida and Takako Taniguchi.
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