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Hodogaya Chemical rises against market trend on Hungarian chemical maker acquisition
Hodogaya Chemical Co.,Ltd. <4112> is trading higher against the broader market decline. After the close of trading on the 27th, the company announced it will acquire all shares of Flamochem Flaminia-Magyar Finomkemiai, a Hungarian chemical manufacturer, for approximately \16.6 billion to make it a subsidiary. The acquisition has attracted buying in anticipation of contributions to earnings.
Flamochem possesses leading technological capabilities in Europe for the manufacture and sale of pharmaceutical raw materials, intermediates, and fine chemical products using phosgene as the main raw material, and is a competitor of Hodogaya Chemical in various phosgene derivative markets. Through this acquisition, the company will gain direct manufacturing facilities in demand regions such as Europe, enabling it to strengthen its global supply responsibility. The company also stated that the deal will solidify its position as a "global niche top" player in the world market. The share acquisition is scheduled for the second quarter of fiscal year ending March 2027. The impact on earnings is currently under review.
Source: MINKABU PRESS
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