Sumitomo Chemical, Mitsui Chemicals nix merger

OSAKA, Japan (April 1)—Sumitomo Chemical Co. Ltd. and Mitsui Chemicals Inc. have called off their merger plan, which would have created the world's fifth-largest chemicals company. The groups could not agree on a consolidation ratio for their various assets, according to a March 31 joint statement. The proposed merger would have created a major Asian player in several sectors of the global rubber market. "While Sumitomo and Mitsui will continue to explore possibilities for strategic alliances and collaboration on a project-by-project basis, the two companies will pursue their respective business operations without any mutually binding constraints or restrictions," the joint statement said. Both firms have EPDM capacity, while Mitsui also produces olefinic elastomers and Sumitomo makes polyolefin-based thermoplastic elastomers and styrene-butadiene general purpose rubber.