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Sumitomo Chemical Sets Share Exchange Ratio to Make Tanaka Chemical a Wholly Owned Unit

Story Highlights
  • Sumitomo Chemical will acquire all Tanaka Chemical shares via a simplified share exchange, making it a wholly owned subsidiary.
  • The agreed share ratio is 0.87 Sumitomo shares per Tanaka share, using treasury stock and a formula tied to recent market prices to support smooth integration.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Sumitomo Chemical Sets Share Exchange Ratio to Make Tanaka Chemical a Wholly Owned Unit

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Sumitomo Chemical Co ( (JP:4005) ) has issued an update.

Sumitomo Chemical and Tanaka Chemical have finalized the share exchange ratio for a simplified share exchange that will make Tanaka Chemical a wholly owned subsidiary of Sumitomo Chemical. Under the agreed terms, Sumitomo Chemical will allot 0.87 of its common shares for each Tanaka Chemical share, delivering an expected 14,028,356 Sumitomo Chemical shares, all sourced from existing treasury stock. The ratio was derived by dividing a fixed value of 424 yen by the four-day average Sumitomo Chemical share price of 486 yen as of January 16, 2026, and may be adjusted slightly if Tanaka Chemical’s treasury share position changes before completion. The transaction structure, including cancellation of Tanaka Chemical treasury shares and cash settlement of fractional Sumitomo Chemical shares, is designed to streamline full integration of Tanaka Chemical into Sumitomo Chemical’s group, strengthening control and potentially enhancing operational and strategic coordination across their chemical businesses.

The most recent analyst rating on (JP:4005) stock is a Hold with a Yen511.00 price target. To see the full list of analyst forecasts on Sumitomo Chemical Co stock, see the JP:4005 Stock Forecast page.

More about Sumitomo Chemical Co

Sumitomo Chemical Co., Ltd. is a major Japanese chemical manufacturer listed on the Prime Section of the Tokyo Stock Exchange, supplying a broad range of chemical products and materials to industrial and consumer markets worldwide. Tanaka Chemical Corporation, listed on the Standard Section of the Tokyo Stock Exchange, operates in the chemical sector as well and serves as a strategic business partner for Sumitomo Chemical within the broader materials and chemicals value chain.

Average Trading Volume: 10,182,281

Technical Sentiment Signal: Buy

Current Market Cap: Yen793.8B

For detailed information about 4005 stock, go to TipRanks’ Stock Analysis page.

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