Japan’s Mitsubishi Materials buys 10% stake in Masan’s mining unit for $90m

Photo: Reuters

Japan’s Mitsubishi Materials Corporation is planning to acquire a 10 per cent stake in the mining subsidiary of Vietnam’s conglomerate Masan Group for  9.5 billion yen ($90 million), according to an announcement.

As part of the deal, Mitsubishi will acquire 110 million new shares in a private placement issued by Masan High-Tech Materials Corporation (MHT). The strategic investment is scheduled to be completed by November 2020.

With this acquisition, Mitsubishi Materials will become the second-largest shareholder of MHT that owns the Nui Phao Mine, one of the world’s leading tungsten mines.

“Through the strategic investment, the company will build a long-term strategic collaboration alliance with MHT. This effort includes: discussion about the establishment of a joint operation in the tungsten recycling business with utilizing global bases of MHT, and collaboration in the midstream tungsten business mainly through but not limited to a technical alliance for manufacturing high-quality tungsten powder, etc,” Mitsubishi Materials said in the announcement.

The Japanese company said it will take advantage of these resources to ensure the stable procurement of tungsten as raw material for cemented carbide tools. It will accelerate the expansion of these businesses by implementing various measures including the collaboration with MHT.

Founded in 2010 as former name Masan Resources Corporation, UPCoM-listed MHT’s main business areas include processing tungsten, producing tungsten powder, and recycling of tungsten and other ores.

In June, Masan Tungsten Limited Liability Company, a wholly-owned subsidiary of MHT, completed the legal steps to acquire the tungsten business of Germany’s H.C. Starck Group GmbH as a strategic step in executing MSR’s vision of becoming a leading global vertically-integrated high-tech industrial materials platform.

Masan Group is backed by global private equity firms such as KKR and PENM Partners and South Korea’s SK Group.

Meanwhile, Mitsubishi Materials is a manufacturer of cement products, copper and aluminum products, cemented carbide tools, and electronic materials. It is one of the core companies of the Mitsubishi Group. The company is listed on the Tokyo Stock Exchange and the Osaka Securities Exchange.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.