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Kumiai Chemical Affirms Independence Despite Major Shareholder Ties to Farm Co-op Federation

Story Highlights
  • Kumiai Chemical underscores that its largest shareholder, Japan’s farm co-op federation, holds 22.1 percent but does not constrain management autonomy.
  • The company conducts large product and raw material transactions with the federation on negotiated, market-based terms, highlighting maintained governance independence.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Kumiai Chemical Affirms Independence Despite Major Shareholder Ties to Farm Co-op Federation

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An update from Kumiai Chemical Industry Co., Ltd. ( (JP:4996) ) is now available.

Kumiai Chemical Industry has disclosed the status of its relationship with its largest shareholder, the National Federation of Agricultural Cooperative Associations, which holds 22.1% of its voting rights and is classified as an other affiliated company rather than a controlling parent. The company emphasizes that this shareholder does not constrain its business activities or management decision-making, underscoring its independence as a listed entity, even though a senior executive from the federation serves as a part‑time Audit & Supervisory Board Member to leverage his agribusiness expertise. The disclosure also details substantial commercial transactions between the two parties—primarily the sale of Kumiai’s products and purchase of raw materials—conducted on arm’s‑length terms via annual price negotiations, signaling to investors and other stakeholders that governance and transaction conditions are aligned with general market practices despite the close business and capital ties.

The most recent analyst rating on (JP:4996) stock is a Hold with a Yen745.00 price target. To see the full list of analyst forecasts on Kumiai Chemical Industry Co., Ltd. stock, see the JP:4996 Stock Forecast page.

More about Kumiai Chemical Industry Co., Ltd.

Kumiai Chemical Industry Co., Ltd., listed on the Tokyo Stock Exchange Prime Market, operates in the agrochemical and related agricultural materials sector, supplying products and raw materials that are closely tied to Japan’s agricultural cooperative system. Its shareholder base includes major agricultural organizations, positioning the company within the broader agribusiness supply chain focused on serving farmers and agricultural distributors.

Average Trading Volume: 714,715

Technical Sentiment Signal: Sell

Current Market Cap: Yen87.07B

Find detailed analytics on 4996 stock on TipRanks’ Stock Analysis page.

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