IMC Agrees to Acquire Tungaloy

Kawasaki based major cemented carbide tool maker, Tungaloy Corporation announced on Monday the firm becomes subsidiary of Netherlands based IMC International Metalworking Companies, which is holding company of tool makers including ISCAR of Israel. IMC increases the cemented carbide tool market share to around 17% from estimated 12% in 2007 after the firm acquires Tungaloy in late November competing with the largest maker of Sandvik Group of Sweden. Nomura Principal Finance controls around 71.2% of Tungaloy share while Aichi based tool maker, OSG Corporation has 19.2% share in Tungaloy. IMC agreed to purchase all Tungaloy share held by Nomura Principal Finance. Tungaloy purchases own share held by OSG to sell to IMC. IMC tries to minority share of Tungaloy in the total 72 billion yen of acquisition. Tungaloy decided to accept the scheme for IMC’s high level technology and synergy in logistics and operations. IMC can improve the presence in growing Asian market along with wider tool products line and large supply volume for Japanese automakers through acquisition of Tungaloy. Tungaloy posted 6.6 billion yen of consolidated recurring profit with 50 billion yen of sales for the year ending March 2008. The firm has second largest domestic market share after Mitsubishi Materials. Tungaloy’s world market share is estimated to be after estimated 34% of Sandvik, IMC, 10% of Kennametal and Mitsubishi Materials.