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Mitsubishi Materials Corporation - Execution of Final Agreement Concerning Integration of Businesses for the Purchase of Copper Concentrates and the Sale of Related Products
Mitsubishi Materials Corporation - Execution of Final Agreement Concerning Integration of Businesses for the Purchase of Copper Concentrates and the Sale of
About this update from Mitsubishi Materials Corp.
[{"type":"text","content":"Mitsubishi Materials Corporation (Executive Officer and President: Tetsuya Tanaka, hereinafter, 'MMC'), JX Advanced Metals Corporation (President: Yoichi Hayashi, hereinafter, 'JX'), Mitsui Kinzoku Company, Limited (President: Seiji Ikenobu, hereinafter, 'Mitsui Kinzoku'), and Marubeni Corporation (President: Masayuki Omoto, hereinafter, 'Marubeni'; collectively, the 'Companies') hereby announce that, as of May 28, 2026, the Companies have entered into a definitive agreement (hereinafter, 'Final Agreement') regarding the integrating of MMC's businesses (the purchase of copper concentrates and the sales of related products including copper cathodes, sulfuric acid, and other by-products derived from copper concentrates; hereinafter, the 'Target Business') into Pan Pacific Copper Co., Ltd. (hereinafter, 'PPC'), which is a joint venture among JX, Mitsui Kinzoku, and Marubeni.\nThis transaction is hereinafter referred to as the 'Transaction.'\nAs competition with overseas smelters increases, the conditions for purchasing copper concentrates from mining companies (TC/RC) have significantly deteriorated, and the outlook for the external environment surrounding the copper smelting business remains uncertain. Domestic copper smelters play a vital role not only in producing copper cathodes, but also in recovering rare metals and precious metals. These metal resources are indispensable for advanced technologies and products, especially for developing AI data centers, and the sustained operation of copper smelters is extremely important from the perspective of economic security.\nUnder these circumstances, as announced in November 2025, the Companies have been specifically discussing and considering this integration with the aim of establishing a new framework to strengthen international competitiveness and maintain and improve profitability. The Companies have decided to execute the Transaction such that PPC will take over the Target Business by means of a company split and transfer the Target Business from PPC to a newly established subsidiary of PPC (hereinafter, the 'New Company'). Following the Transaction, the ownership stakes in PPC will be as follows: JX 32.50%, MMC 32.00%, Mitsui Kinzoku 21.90%, and Marubeni 13.60%. PPC will thereby become an equity-method affiliate of each of the Companies, and the New Company will become a wholly...