It's a deal that marks a decisive step in consolidating two chemical makers.

 

Yes, Sumitomo Chemical has finalized the share exchange ratio for its planned acquisition of Tanaka Chemical Corporation, paving the way for Tanaka Chemical to become a wholly owned subsidiary.

 

Under the simplified share exchange announced in October, Sumitomo Chemical will allot 0.87 of its common shares for every one Tanaka Chemical share, excluding shares already held by Sumitomo Chemical. The transaction will be executed using treasury stock, with approximately 14.03 million Sumitomo Chemical shares expected to be delivered upon completion.

 

The ratio was calculated based on market prices during a four-day trading window on the Prime Market of the Tokyo Stock Exchange, from Jan. 13 to Jan. 16, 2026. Over that period, Sumitomo Chemical shares posted an average closing price of 486 yen, leading to the final exchange ratio derived from a 424 yen benchmark.

 

Any fractional shares resulting from the exchange will be aggregated and sold in accordance with Japan’s Companies Act, with proceeds distributed proportionally to eligible shareholders. Tanaka Chemical will also cancel all treasury shares immediately prior to the effective date of the exchange.

 

Sumitomo Chemical noted that the total number of shares delivered could change depending on future movements involving Tanaka Chemical’s treasury shares.

 

Both companies are listed on the Tokyo Stock Exchange, with Sumitomo Chemical trading on the Prime Section and Tanaka Chemical on the Standard Section.