Mitsubishi Materials to Get 100% Control of Mitsubishi Cable

Mitsubishi Materials announced on Friday the firm acquires all remaining share of Mitsubishi Cable Industries controlling 100% of the cable maker. They concluded the share exchange contract on the day to exchange the shares in March 2010 after Mitsubishi Cable’s shareholders approval in February. Mitsubishi Cable also announced major restructuring including scale down of automotive wiring harness business and withdrawal from loss making business for better profitability.

Mitsubishi Materials has 36.5% of outstanding share of Mitsubishi Cable and is top shareholder of the cable company. Mitsubishi Materials issues 35.94 million shares and purchase remaining Mitsubishi Cable’s share for 43.94 million of own shares, which represents Mitsubishi Cable’s share holders get Mitsubishi Materials’ 0.32 share for each share of Mitsubishi Cable.

Mitsubishi Materials already purchase remaining share of Mitsubishi Shindoh controlling 100% of the subsidiary. With 100% control of Mitsubishi Cable, Mitsubishi Materials’ all 6 domestic copper processing subsidiaries become unlisted companies.

Mitsubishi Cable stops shipment of automotive wiring harness for major users at end June, 2010 to reshuffle the domestic business. The firm withdraws from loss making businesses including commodity grade optical fiber cable, optical fiber equipment for household and optical communication installation work.