Mitsui Chemicals, Inc. has signed an agreement to acquire JSR Corp., a Tokyo-based developer and manufacturer of semiconductor materials including photoresists, from investment funds managed by JIC Capital, Ltd. The transaction is valued at ¥1.84 trillion ($11.6 billion), including debt, and would make JSR a consolidated subsidiary of Mitsui Chemicals.
Mitsui Chemicals will buy all JSR common shares held by JIC PEFJ1 Limited Partnership and JIC PEF1 Limited Partnership, jointly with Development Bank of Japan Inc. (DBJ), which will invest ¥200 billion ($1.3 billion). The price consists of an equity value of ¥1.3921 trillion ($8.8 billion) and ¥447.9 billion ($2.8 billion) in interest-bearing debt and other items, with the final consideration subject to adjustment at closing. Mitsui also expects to acquire JSR’s Class A and Class B preferred shares from Mizuho Bank and DBJ for cash. Those shares are slated to convert into common shares after closing, while DBJ’s common shares will convert into non-voting preferred shares.
Semiconductor materials fit
The acquisition supports Mitsui Chemicals’ “VISION 2030” plan, which combines a specialty chemicals pillar—Life & Healthcare Solutions, Mobility Solutions and ICT Solutions—with a Basic & Green Materials (B&GM) pillar centered on petrochemicals. Mitsui said JSR’s advanced photoresists, customer base in semiconductor and optical fields, and global reach make it a core part of its ICT Solutions domain.
Mitsui plans to combine its MITSUI PELLICLE products and JSR’s advanced photoresists in front-end processes, and its ICROS Tape and thick-film resists in back-end processes. It is targeting annual incremental profit of about ¥40 billion ($253 million) by fiscal year 2035 from growth and cost synergies.
Split-off and portfolio moves
Mitsui Chemicals first said in May 2025 that it would consider splitting off B&GM. It will now add its Mobility Solutions business to the scope, aiming to form a polymer science company with an integrated polymer chain spanning upstream petrochemicals and downstream functional polymers. The company also plans to become more asset-light in underperforming businesses, improve its cash conversion cycle and sell shareholdings.
Alongside JSR’s review of its life sciences business—contract research and contract development and manufacturing, which JSR treats as non-core—Mitsui expects benefits representing business value of ¥350 billion ($2.2 billion) or more.
Financing and approvals
Funding will come from a ¥1.64 trillion ($10.4 billion) bridge loan from Mitsui’s principal financial institutions and DBJ’s ¥200 billion investment. Net debt/EBITDA is expected to temporarily exceed 4x after closing. To protect an “A”-category credit rating, Mitsui plans to refinance the bridge loan within one year of closing using bank loans, bonds and equity. It aims to have the equivalent of ¥300 billion ($1.9 billion) recognized as equity by rating agencies, capping common share issuance, including treasury shares, at ¥150 billion ($948 million) and adding ¥300 billion of mezzanine financing, of which 50% is assumed to count as equity.
Mitsui filed a shelf registration on Nov. 9 for up to ¥150 billion of common shares. It becomes effective Nov. 17, 2026, and runs through Nov. 16, 2028, with proceeds going toward partial repayment of the bridge loan. SMBC Nikko Securities and Mizuho Securities are expected to be the primary underwriters.
Four JSR affiliates will become specified subsidiaries of Mitsui Chemicals: Inpria Corp. in Corvallis, Ore.; KBI Biopharma, Inc. in Durham, N.C.; JSR North America Holdings, Inc. in Sunnyvale, Calif.; and JSR Life Sciences, LLC in Sunnyvale. JSR reported revenue of ¥440.7 billion ($2.8 billion), consolidated operating profit of ¥40.5 billion ($256 million) and profit attributable to owners of ¥59.3 billion ($375 million) for the fiscal year ended March 2026.
The transaction is subject to competition-law and foreign-investment approvals in Japan and overseas. Mitsui Chemicals aims to close in the second half of the fiscal year ending March 2028, and expects the impact on results for the fiscal year ending March 2027 to be minor. Currency conversions use an exchange rate of ¥158.2 per $1 on Nov. 9, 2026.