October 1, 2020
Conclusion of Share Transfer Agreement with Middle Eastern Company Operating Water Treatment Chemicals Business
Kurita Water Industries Ltd. (Head Office: Nakano-ku, Tokyo; President: Michiya Kadota; hereinafter "Kurita") concluded an agreement concerning the transfer of shares with Aqua Chemie DMCC (based in the United Arab Emirates, or "UAE"; hereinafter "AC") on September 30, 2020. Around the end of December 2020, 51% of shares in a holding company to be newly established by AC in the UAE will be acquired by Kurita Europe GmbH (based in Germany; hereinafter "KEG"), a consolidated subsidiary of Kurita. The holding company to be newly established will acquire 100% of shares in operating companies that maintains water treatment chemical manufacturing facilities in the UAE and Saudi Arabia (KSA), respectively.
The Kurita Group aims to achieve global business expansion through a structure of four regions around the world, Japan, Asia, EMEA (Europe, the Middle East and Africa) and North & South America. In the Middle East, the Kurita Group launched a water treatment chemicals business in the KSA in 2005, and the business later expanded with the establishment of Kurita Middle East FZE (based in the UAE) as a subsidiary of KEG in November 2016. AC pursues water treatment chemical manufacturing and sales operations in nations of the Gulf Cooperation Council (GCC) and has previously collaborated with the Kurita Group in the GCC region.
Through this joint venture composed of three companies, namely the holding company and the operating companies in the UAE and KSA, the manufacturing facilities and unique water treatment chemicals maintained by AC along with its local contacts and sales network will be combined with the Kurita Group's products, technologies and services to build the foundations to pursue business activities focused on proposing solutions to customers. This approach will speed up business growth in the Middle East.
To bolster its global four-region structure, moving forward the Kurita Group will advance efforts to optimize its business portfolio and develop business foundations in each geographical area around the world. The Group will also seek to expand growth opportunities through M&A activities, tie-ups with strategic partners and similar endeavors while developing increased intimacy with customers by providing them with total solutions that create new value.