A veteran PCB recycler’s decision and a manufacturer’s intention

2015/08/07

JX Nippon Mining & Metals recently acquired 100% ownership of Takasho Co., Ltd. that has conducted recycling of scrap PCB for a long time in Kanto region.
→(Related article)PCB recycler, Takasho Co., goes under umbrella of JX Nippon Mining & Metals

The news was a long-absent surprise for PCB recycling industry and non-ferrous smelting industry and reported nationwide.

The acquisition can be described as a so-called thunderbolt.
That’s because Takasho has been working for a long time with not JX but another non-ferrous smelter, M Company, which has accounted for more than 80% of Takasho’s business. Takasho also equipped a crusher for the M Company. So to speak, Takasho has been a PCB recycler and a supplier of precious metals and copper residues almost only for M Company.

Takasho, a time-honored company has decreased its transaction volume year by year as it has no successors.
The decision may have been made by the company which considered it better to go under the umbrella of a major company than to continue managing the company by themselves to protect the company and its employees.

In fact, the industry was surprised at the fact that the partner of the M&A was not the M Company but JX.
It was the very M Company that would have experienced “a thunderbolt”. M Company seems to hold a grudge against the purchasing play and to be feeling annoyed.

Amid a flurry of speculation on why Takasho selected JX not M Company, the reason is not yet clear.

By contraries, the acquisition of Takasho must offer numerous benefits to JX. As JX has faced a shortage of capacity for crushing printed boards, Takasho’s equipment, technology and accumulated know-how will contribute a lot to JX’s business in recycling scrap PCB.

Basically, M&A never succeeds without the coincidence in intention between two parties.
In this context, at the risk of being misunderstood, the acquisition could be evaluated as a fine play where JX, which grasped Takasho’s intention, could reap a windfall.

(Edited by Sasaki)

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