In today’s briefing:
- [Japan M&A] Krosaki Harima (5352) Takeout by Parent Nippon Steel – Cheapish But Done
- Merger Arb Mondays (04 Aug) – Santos, Joy City, HKBN, Krosaki Harima, Fujitec, Smart Share
- Expand Energy: Initiation of Coverage- A Closer Look At Its Recent Strategic Hedging Efforts
- PPG Battles Rising Costs with Pricing Power—Can It Outperform Rivals in Latin America?
- Taiyo Holdings (4626 JP): Q1 FY03/26 flash update
[Japan M&A] Krosaki Harima (5352) Takeout by Parent Nippon Steel – Cheapish But Done
- On Friday 1 August, Nippon Steel Corporation (5401 JP) and subsidiary Krosaki Harima (5352 JP) announced the parent would buy out the sub at ¥4,200/share.
- This seems light given the structure of the balance sheet (lots of net receivables – a bunch against the buyer) but it would be awfully tough to see this broken.
- As it is a long-dated deal, I expect it trades too tight early on, then may flatten or fade.
Merger Arb Mondays (04 Aug) – Santos, Joy City, HKBN, Krosaki Harima, Fujitec, Smart Share
- I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: Mayne Pharma (MYX AU), ENN Energy (2688 HK), Krosaki Harima (5352 JP), Joy City Property (207 HK), Santos Ltd (STO AU), Smart Share Global (EM US).
- Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), ZEEKR (ZK US), New World Resources (NWC AU), Ainsworth Game Technology (AGI AU), Nippon Concept (9386 JP).
Expand Energy: Initiation of Coverage- A Closer Look At Its Recent Strategic Hedging Efforts
- Expand Energy recently shared its 2025 second quarter financial and operating results, highlighting some of the key aspects from their merger strategy as well as operational benchmarks.
- The company has undertaken a comprehensive approach to optimize capital efficiency while accelerating synergies and leveraging technological advances.
- From a strategic perspective, Expand Energy’s merger with Chesapeake and Southwestern aimed to establish a deep and diverse portfolio across premium markets.
PPG Battles Rising Costs with Pricing Power—Can It Outperform Rivals in Latin America?
- PPG Industries recently released its second quarter 2025 financial results, showcasing a blend of performance indicators that should be carefully considered by investors.
- The company reported net sales of $4.2 billion, with a 2% increase in organic sales.
- This growth was majorly driven by strong performances in the Aerospace Coatings, Protective & Marine Coatings, and Packaging Coatings segments.
Taiyo Holdings (4626 JP): Q1 FY03/26 flash update
- Sales increased 7.5% YoY in Q1 FY03/26, with Electronics and Medical segments reporting growth of 3.6% and 14.0% respectively.
- The Electronics segment’s profit rose 1.9% YoY, affected by yen appreciation and decreased sales of high value-added films.
- The Medical and Pharmaceuticals segment’s profit surged 138.0% YoY, driven by contract manufacturing business growth.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
