Japan’s Nippon Shokubai and Sanyo Chemical Industries have delayed their merger agreement and formation of joint venture over the ongoing Covid-19 pandemic. This integration was planned to establish a joint holding company, Synfomix, Ltd. by way of a joint share transfer, which would subsequently become the integrated holding company serving as parent to the two companies.

 

In their respective board meetings, the companies decided to postpone the business integration and review the share transfer ratio.

 

The companies said that Covid-19 impacted the performance, financial, economic, market and other business factors.

 

A joint statement from Nippon Shokubai and and Sanyo Chemical said: “However, as the recent global outbreak of Covid-19 and the sharp decline in the oil and oil product markets, among other factors, have caused the performance and other aspects of the companies, as well as the financial, economic, market and other elements of the business environment, which served as bases for the agreement on the business integration, to become unpredictable.”

 

Under the terms of the final agreement, the joint venture of the companies was set to be established on 1 October 2020, along with the share transfer.

 

In a memorandum of understanding about the final agreement, Nippon Shokubai and and Sanyo Chemical agreed that the establishment would now take place on 1 April 2021.

 

The companies added: “There are no significant changes to the terms of the business integration from the terms announced 29 November 2019 except for the schedule of the business integration including the establishment date of the integrated holding company and the share transfer ratio.”