Mitsubishi spends $90mln for 10% stake in Masan’s high-tech material unit

Masan High-Tech Materials signed an agreement to form a strategic alliance in the tungsten industry with Mitsubishi Materials after the deal, the group said in a statement sent to media on Monday afternoon.

The newly-formed alliance has an objective to develop a leading, high-tech tungsten materials platform. Mitsubishi Materials will subscribe for 109,915,542 newly issued ordinary shares via a private placement.

On completion of the transaction, the Mitsubishi will own 10 percent of the fully diluted share capital of Masan High-Tech Materials and becoming the second largest shareholder of the company.    

The two firms will discuss developing a separate business unit to strengthen and unlock synergies for each respective parties’ mid-stream tungsten platform.

“I am extremely proud that we are starting to realize our strategic vision. Forging a strategic alliance with Mitsubishi Materials Corporation will certainly accelerate our vision to become an end to end global high-tech industrial materials platform. Our customers will benefit the most as this partnership will strengthen our capabilities to supply, quality and innovative products and solutions,” said Craig Bradshaw, Chief Executive Officer of MHT.

A plant of Masan High-Tech Materials Corporation in Canada. Photo: Masan

Masan High-Tech Materials is a leading supplier of critical minerals including tungsten, fluorspar and bismuth, is currently operating the world class polymetallic mineral resource and chemical processing plant in Northern Vietnam.

While Mitsubishi Materials Group is an “integrated materials manufacturer.” It meets customers' needs by providing such basic materials as copper and cement.

Mitsubishi Materials Group also manufactures and sells mechanical parts, electronic materials and components used in automobiles, home appliances, as well as the tools used to make them. Mitsubishi Materials Group  is also involved in recycling and energy business.

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