Mitsubishi Rayon to buy UK group

MITSUBISHI Rayon Co said it will buy British acrylic maker Lucite International Group Holdings Ltd for US$1.6 billion to strengthen its methyl methacrylate business and expand production bases to Europe and the United States.

The acquisition, which is to be made in January, may contribute about 600 billion yen (US$6.13 billion) of combined revenue, Tokyo-based Mitsubishi Rayon said. It would also give Mitsubishi Rayon more than a third of the global market for acrylic monomers.

The Tokyo-based company may be taking advantage of current conditions in the slowing global economy, and a yen that has gained 10 percent against the dollar over the past three months, to expand its overseas business.

"Because of a strong yen, it's good timing for Japanese companies to make overseas acquisitions," said Junko Miyakawa, a credit analyst.

About 86 percent of Mitsubishi Rayon's revenue is generated in Asia. Lucite, the maker of Perspex and Lucite acrylic sheet, is the successor to the acrylic businesses of DuPont Co and Imperial Chemical Industries Plc. Charterhouse bought the business in 1999 and renamed it Lucite International Group Holdings Ltd in 2002.