Why is Mitsui Chemicals stock plunging today?

Mitsui Chemicals shares fell 11.6% to ¥1,830 during today’s session after a Reuters exclusive report revealed that state-backed Japan Investment Corp plans to offload chipmaking materials manufacturer JSR to the company.

The deal value could exceed ¥1.3 trillion ($8.2 billion), with a final decision potentially coming within the month. The sheer scale of the proposed deal — substantially larger than JIC’s original acquisition cost of roughly ¥900 billion two years ago — sent investors rushing for the exits on concerns that Mitsui Chemicals would face enormous capital-raising requirements to fund the purchase.

Market commentary from Japanese financial outlets reflected deep unease about the financial strain such a transaction would place on Mitsui Chemicals’ balance sheet, with some analysts noting the risk of equity dilution or a significant increase in leverage.

At the same time, a minority of voices suggested the deal could ultimately reposition the company as a more prominent player in the high-growth semiconductor materials space, though that longer-term thesis did little to stem today’s selling.

The broader market offered little support, with the Nikkei 225 sliding nearly 2% on sustained losses in local tech shares.