Aica Kogyo (TYO:4206) signed a memorandum of understanding to acquire Takarainc as a subsidiary through a partial share exchange or another agreed method, according to a Thursday filing on the Tokyo Stock Exchange.
The companies aim to complete the transaction without requiring shareholder approval under Japan's Companies Act.
Aica said it plans to finalize the share exchange agreement by early July, with the transaction effective from early September, pending regulatory clearance and due diligence.
Aica Kogyo shares rose over 4% in morning trade Friday.
Price (JPY): $3494.00, Change: $+150, Percent Change: +4.58%