ENEOS Holdings announced that it will acquire JSR’s elastomer business, which produces essential materials for low fuel consumption and high-performance tires, in April 2022. The acquisition is expected to contribute to ENEOS’ growth as the demand for tires is expected to remain strong despite changes in power sources and forms, such as the shift from gasoline cars to electric vehicles. The purchase price will be determined based on the enterprise value of 115 billion yen, adjusted for net interest-bearing debt and working capital. JSR will transfer the elastomer business to a new company called “Nippon Synthetic Rubber Split Preparation Corporation” before ENEOS acquires all of its shares through its subsidiary, ENEOS. The elastomer business had sales of 143.1 billion yen and a loss of 11.4 billion yen in the fiscal year ending March 2021. On April 1, 2022, JSR announced that the transfer had been completed.

As an M&A advisor, it is important to note that ENEOS’ acquisition of JSR’s elastomer business is a strategic move to expand its business in the tire industry, which is expected to grow in the future. The acquisition will also help ENEOS to diversify its business portfolio and strengthen its competitiveness in the market. However, it is important for ENEOS to carefully manage the integration process to ensure a smooth transition and maximize the benefits of the acquisition.