TOKYO (Jan. 25)—Mitsubishi Chemical Corp. and Tokai Carbon Co. Ltd. have decided to revoke an agreement on allying their carbon black businesses, citing opposition to the move from Japan's Fair Trade Commission.
Mitsubishi and Tokai had disclosed in July their intention to create a joint venture involving their separate carbon black businesses in Japan, citing opportunities to create synergy of production, sales, technology and other resources in Japan and explore business opportunities in China. Tokai would have controlled 60 percent of the venture, which would have generated about $175 million in annual sales.
The commission suggested the alliance might "substantially restrict competition" in the Japanese market, the two firms said. They said they explored several alternatives but eventually concluded that the deal could not take place in the current economic climate.