Resonac to Spin Off Petrochemical Unit Crasus Chemical

Resonac Holdings Corp. has approved a plan to spin off its wholly owned petrochemical subsidiary, Crasus Chemical Inc., as part of a broader restructuring of its business portfolio. The spin-off is scheduled to take effect on October 1, 2026, subject to approval for the listing of Crasus Chemical’s common shares on the Tokyo Stock Exchange (TSE).

Under the planned transaction, Resonac will distribute Crasus Chemical shares to its shareholders as an in-kind dividend. Shareholders recorded as of September 30, 2026, will receive one Crasus Chemical share for every Resonac Holdings share they own. The total carrying amount of the dividend property is estimated at approximately ¥37.8 billion, equivalent to ¥199.02 per share based on the estimated carrying value as of July 31, 2026.

Following the transaction, Resonac Holdings’ ownership in Crasus Chemical is expected to decline to less than 20%. As a result, Crasus Chemical will no longer be treated as a consolidated subsidiary of Resonac and is also expected to fall outside the scope of equity-method accounting because Resonac is not expected to retain significant influence.

The company said the financial impact of the spin-off on its consolidated results remains under review. Starting in the third quarter of fiscal 2026, the Crasus Chemical segment will be reported as a discontinued operation under IFRS 5. Its revenue and expenses will therefore be presented separately from Resonac’s continuing operations.

Crasus Chemical, based in Oita City, Japan, produces and markets a range of petrochemical and chemical products. Its portfolio includes basic petrochemicals such as ethylene and propylene, organic chemicals based primarily on acetic acid, and synthetic resin products. Resonac established the company on August 1, 2024, as a wholly owned subsidiary.

For the fiscal year ended December 31, 2025, Crasus Chemical recorded consolidated net sales of approximately ¥303.9 billion and operating income of around ¥4.2 billion under Japanese GAAP. The spin-off could provide the petrochemical business with greater operational independence while allowing Resonac to sharpen its focus on its continuing businesses.

The transaction schedule begins with September 28, 2026, which is expected to be the last trading day for Resonac shares with entitlement to the distribution. September 29 will be the ex-rights date and the scheduled listing date for Crasus Chemical shares on the TSE. September 30 will be the record date, followed by the effective date of the in-kind dividend and distribution on October 1, 2026.

Impact on Products and Chemical Commodity Prices

The spin-off is unlikely to immediately alter physical supply or production capacity for ethylene, propylene, acetic-acid-based chemicals, or synthetic resins because Crasus Chemical’s operations will continue under a separate corporate structure. In the near term, market prices for these commodities should therefore remain driven primarily by feedstock costs, operating rates, regional demand, and broader petrochemical conditions. However, greater independence could encourage Crasus Chemical to optimize production, investment, and commercial strategy. If restructuring improves efficiency or capacity utilization, supply availability could increase and place modest downward pressure on prices. Conversely, stronger standalone investment could support long-term capacity expansion and influence regional petrochemical balances.