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hitachi-metals.co.jp

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Investments

1

Portfolio Exits

1

Partners & Customers

1

About Hitachi Metals

Hitachi Metals (TYO: 5486) manufactures and markets high-grade metal products and materials, magnetic materials and applications, high-grade functional components and equipment, wires, cables, and related products. The Hitachi Metals Group has sales bases in Japan, North America, Europe, Singapore, Thailand, India, China, Hong Kong, Taiwan, and South Korea. Hitachi Metals is a subsidiary of Hitachi.

Hitachi Metals Headquarter Location

Shinagawa Season Terrace 1-2-70, Konan, Minato-ku

Tokyo, 108-8224,

Japan

+81-3-6774-3001

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Latest Hitachi Metals News

Japan is defending its rare earth industry from foreign takeovers

Sep 6, 2021

1 minute ago As the world embarks on an energy transition that will likely see fossil fuels take a back seat to renewables like wind and solar, a new set of industries is emerging as key to countries’ national security. These include sectors that mine, process, and use critical metals that are vital to batteries and wind turbines. In a sign of how important yet vulnerable these industries are, Japan now wants to better protect them from unwanted foreign takeovers. Last month, the Japanese government put forward a proposed amendment to existing foreign exchange and foreign trade legislation that would add industries related to critical rare metals —including lithium, cobalt, and rare earths —to a list of key sectors with more stringent rules designed to protect them from potentially problematic foreign investment and takeovers. “The proposed amendment of the Foreign Exchange and Foreign Trade Act (“FEFTA”) to include the rare earths industry is not an unexpected development,” Jacky Scanlan-Dyas, a Tokyo-based partner at the law firm Hogan Lovells, wrote in an email. “As to how effective this amendment will be, it remains to be seen,” she added, because the law is “largely reliant on companies self-reporting their transactions that may trigger a need for prior approval from the regulator,” though authorities can investigate and unwind unreported transactions if necessary. Core industries for national security Japan had already amended FEFTA in 2019 to designate 500 companies across 12 “core” industries to be subject to the most stringent foreign investment rules. Any foreign individual or firm looking to acquire a 1% stake in companies that are part of the “core” sectors critical to national security would have to undergo a an official approval process. The 1% threshold had been slashed from 10%. The 12 core industries (pdf) designated under the 2019 amendment included weapons, aircrafts, space, cybersecurity, electrical power, gas, and oil. Companies classified for stringent protections include Hitachi Metals , a leading permanent rare earth magnet maker; the auto giant Toyota ; Shin-Etsu Chemical, which makes silicon wafers for semiconductors; but also the snacks manufacturer Calbee , famous for its addicting potato chips, prawn crackers, and corn fries. Protecting the critical metals and rare earth sectors Now, Japan wants to add rare metals-related sectors to the list of core industries. Semiconductors, advanced electric vehicle batteries, and medical supplies are also expected to be designated as key to economic security under the amended legislation, according to Japan Times . The amendments are currently under public consultation and are expected to take effect later this year, according to Argus Media, an energy and commodities data provider. Japan is heavily reliant on imports for rare earths, though over the past decade it has successfully reduced dependence on China by diversifying its sources. Japanese companies also own important intellectual property related to the production of permanent rare earth magnets , which are vital components in electric vehicles and wind turbines. The trove of valuable IP potentially makes Japanese firms attractive targets of takeovers by adversaries or competitors of Japan. Hitachi Metals, for example, holds “a significant portfolio of rare earth magnet patents,” according to the law firm Allen & Overy , and was recently put on sale by its parent Hitachi. In April it accepted an offer with a strong Japanese component—the bid  from a US-Japanese consortium led by Bain Capital. Meanwhile, a search of the World Intellectual Property Organization’s patent database shows that Japan holds the highest number of registered patents with the words “rare earth magnet” in the patent title. Another way in which the latest amendments to designate rare metals as a protected core industry can help Japan is to allow it to potentially qualify for preferential treatment under US foreign investment rules. The Committee on Foreign Investment in the United States (CFIUS) reviews certain foreign investments, and for foreign investors who have to comply with full CFIUS reporting requirements, the process can be time-consuming and costly. However,  “ excepted foreign states “—currently limited to Australia, Canada, and the UK—are exempt from the most stringent CFIUS rules. By demonstrating its commitment and ability to set up a robust mechanism to screen foreign investments for national security risks, however, Japan may increase its chances of getting on the so-called CFIUS “ white list .” “Japan’s efforts to strengthen its investment screening mechanisms with amendments to the FEFTA may possibly be carrying with it the additional hope of being considered an excepted foreign state for US law purposes, but again, the U.S. has not yet included Japan in the list of excepted foreign states,” explained Scanlan-Dyas of Hogan Lovells.

Hitachi Metals Investments

1 Investments

Hitachi Metals has made 1 investments. Their latest investment was in Shanghai Sunshine Copper Products as part of their Corporate Minority - II on January 1, 2002.

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Hitachi Metals Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

1/1/2002

Corporate Minority - II

Shanghai Sunshine Copper Products

Yes

1

Date

1/1/2002

Round

Corporate Minority - II

Company

Shanghai Sunshine Copper Products

Amount

New?

Yes

Co-Investors

Sources

1

Hitachi Metals Portfolio Exits

1 Portfolio Exit

Hitachi Metals has 1 portfolio exit. Their latest portfolio exit was SinterMet on December 07, 2016.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

12/7/2016

Acq - Fin

1

Date

12/7/2016

Exit

Acq - Fin

Companies

Valuation

Acquirer

Sources

1

Hitachi Metals Acquisitions

4 Acquisitions

Hitachi Metals acquired 4 companies. Their latest acquisition was Biomerics on February 19, 2016.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

2/19/2016

Acquired

1

2/19/2016

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$99M

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10

2/19/2016

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$99M

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10

11/29/2000

Acq - Fin

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$99M

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10

Date

2/19/2016

2/19/2016

2/19/2016

11/29/2000

Investment Stage

Acq - Fin

Companies

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Valuation

Total Funding

$99M

$99M

$99M

Note

Acquired

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Sources

1

10

10

10

Hitachi Metals Partners & Customers

1 Partners and customers

Hitachi Metals has 1 strategic partners and customers. Hitachi Metals recently partnered with Internet Initiative Japan on January 1, 2016.

Date

Type

Business Partner

Country

News Snippet

Sources

1/12/2016

Partner

Internet Initiative Japan

Japan

1

Date

1/12/2016

Type

Partner

Business Partner

Internet Initiative Japan

Country

Japan

News Snippet

Sources

1

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