BRIEF—Mitsubishi Chemical to take full control of Mitsubishi Tanabe

Japan’s largest chemical company Mitsubishi Chemical Holdings said on Monday it will pay 491.8 billion yen ($4.52 billion) to make Mitsubishi Tanabe Pharma a fully owned subsidiary.

Mitsubishi Chemical will offer 2,010 yen for each share it doesn't already own in Mitsubishi Tanabe, of which it already owns 56%, said in a statement to the Tokyo Stock Exchange.

That is a 50% premium to the drugmaker's closing price of 1,338 yen per share in Tokyo trading.

Mitsubishi Tanabe’s shares shot up 22.4% to 1,638 yen on the news.

In a separate statement, Mitsubishi Tanabe says it has determined that the 2,010 yen per share offer “is a reasonable price that secures interest that should be enjoyed by Mitsubishi Tanabe’s general shareholders with a reasonable opportunity to sell Mitsubishi Tanabe common shares at a price inclusive of an appropriate premium.”