Japan: Mitsubishi Materials and Ube Industries have signed a letter of intent to start discussing a potential merger of their cement businesses and related concerns. If the discussions and a subsequent study are successful, the companies plan to sign a definitive agreement in late September 2020 ahead of an anticipated integration around April 2022. Any formal decision to merge the companies would be subject to approval from the Japan Fair Trade Commission.
The companies have decided to explore merging their cement operations following slowing demand and increased costs due to higher energy prices. They have worked together since 1998 in a joint venture called Ube-Mitsubishi Cement, which integrated their cement sales and logistics operations.