TOKYO—Shin-Etsu Chemical Co. has bought all of the shares it didn't hold in Asia Silicones Monomer Ltd., making the firm a wholly owned subsidiary of the Shin-Etsu Chemical Group.
Shin-Etsu acquired the shares that had been indirectly held by General Electric Co. GE and the Japanese firm established ASM in 2001 as a 50/50 joint venture. After GE sold its silicone business to Apollo Management L.P. in 2006, GE continued to hold its shares in ASM and manage the firm jointly with Shin-Etsu. Shin-Etsu paid GE about $148 million for the shares.
The silicones business is part of Apollo's Momentive Performance Materials Inc. Following the close of the Shin-Etsu/GE deal, Momentive signed a long-term purchase agreement where ASM will provide Momentive with siloxane through 2026 with an option to extend it through 2036, according to a Momentive filing. That agreement replaces one Momentive had with GE to ensure siloxane supply. In connection with those transactions, Momentive said it received a one-time payment of $101.8 million from GE.
Shin-Etsu said the purchase will allow it to further integrate the operations of ASM with those of Shin-Etsu Silicones (Thailand) Ltd., which makes and sells silicone products, thus leading to expansion of its business in Asia.