MBK Partners, a Korea-based private equity firm, is set to acquire Artemira, a major Japanese aluminum can manufacturer.
According to Nihon Keizai Shimbun (Nikkei) on Tuesday, MBK has agreed to acquire Artemira, Japan's third-largest aluminum can maker, for 130 billion yen (approximately 1.2 trillion won) including debt. MBK has already received prior screening approval from the Japanese government under the Foreign Exchange and Foreign Trade Act.
Artemira specializes in aluminum cans and industrial aluminum, with revenue of about 200 billion yen (approximately 1.8 trillion won), ranking third in Japan's aluminum can sector behind Toyo Seikan and others. U.S.-based fund Apollo Global Management acquired the company in 2022 and has since pursued expansion into Asian markets and growth in its recycling business.
MBK plans to acquire the stake from Apollo, explore business integration through acquisitions of peer companies, and then pursue an initial public offering (IPO), Nikkei reported. Specifically, the firm aims to expand operations in Vietnam and transform the industrial product segment into a specialty (high value-added) business.
The acquisition appears smoother than MBK's earlier attempt to acquire machine tool company Makino Milling Machine, which the Japanese government blocked last month. The government's order to halt an acquisition was the first such move in 17 years, since it blocked a British private equity firm's additional stake purchase in J-Power in 2008.
Makino's machine tools are designated as a "core sector" under the Foreign Exchange and Foreign Trade Act, including dual-use technology (materials that can be used for both military and civilian purposes). Authorities are believed to have been concerned about the risk of information leaks, given that Makino's machine tools are widely used in the manufacturing of defense equipment.
Artemira also required prior screening before the acquisition, as it is treated as a core sector due to its involvement in lithium-ion batteries and other products. However, Japanese authorities approved the Artemira acquisition within two months, in what analysts view as a judgment that the deal posed fewer security threats than the Makino case.
