 |
Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] SEOUL, June 4 — Samyang Corp. has decided to acquire Japan-based flavor and aroma chemical company Soda Aromatic Co., Ltd. for 41 billion yen ($290 million), even as concerns grow over financial strain following recent regulatory fines.
According to regulatory filings, Samyang approved the purchase of a 100% stake in Soda Aromatic on May 29, with the deal expected to close on July 1. The acquisition, equivalent to about 10.7% of Samyang’s total assets, will be funded in cash through its Japanese subsidiary.
The move marks Samyang Group’s first acquisition of a Japanese company and its first overseas expansion in the food business through M&A. Soda Aromatic operates production bases across Asia and specializes in flavors, fragrances and aroma chemicals.
While credit rating agencies view the deal positively for business diversification, they have warned that overlapping cash outflows could weaken financial buffers and increase borrowing, raising the risk of a potential credit rating downgrade.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
