Earlier this week Mitsubishi Materials Corp announced the sale of its aluminium business to American investment fund Apollo Global Management. The sale amount was not disclosed to the public at that time.
In a statement released to the press, Mitsubishi said that it was unable to find synergies with its other business areas, including copper for electric vehicles and cement.
The deal will be reflected by a US$251 million restructuring charge loss in the first quarter. However, the full-year earnings forecast released this month discounted the restructuring charge.
Concurrent with the sale of the aluminium business was Mitsubishi’s reduction in interest in PT Smelting, which is a copper smelting joint venture with PT Freeport Indonesia. PT Smelting is planning to boost capacity by 30 percent by the end of 2023 via an expansion funded by a loan. The loan will become newly-issued shares upon completion of the expansion, explained Mitsubishi.
Once the US$250 million expansion is complete, Mitsubishi’s share in PT Smelting will decrease from 60.5 percent to 35 percent.
Mitsubishi Materials began in 1870 as Tsukumo Shokai, which was later taken over by Mitsubishi Mining Company in 1918. Mitsubishi Cement Corp, which was founded in 1954, subsequently merged with Mitsubishi Metal Corp in 1990 to become Mitsubishi Materials.