Japanese conglomerate Sojitz Corp announced on 9 November that it has signed a memorandum of understanding (MOU) to purchase a 5 percent equity interest in Masan High-Tech Materials (MSR), Vietnam’s leading tungsten and fluorspar producer. The agreement was reached in Tokyo and will see the shares transferred from Masan Horizon, a wholly-owned subsidiary of the Masan Group, the ultimate controlling shareholder.
Deal structure and valuation
The purchase price is anchored to a floor equal to the amount paid by the U.S.-based Elmet Group for a 4.99 percent stake in October. That earlier transaction implied a company valuation of roughly US$2.5 billion, which translates to an estimated US$125 million for the 5 percent block Sojitz intends to acquire. The figure serves as a benchmark rather than a fixed sum; the final consideration will be confirmed after thorough due-diligence and the receipt of all regulatory approvals.
This is a transfer of existing shares, not a subscription for newly issued equity, meaning no cash will flow directly to the tungsten producer. The parties target signing definitive agreements by the end of 2026, contingent on standard approvals. The MOU also foresees a complementary commercial arrangement that would grant Sojitz rights to distribute MSR’s products in Japan.
Strategic implications for supply chains
Under the proposed commercial pact, Sojitz would become the exclusive Japanese distributor of MSR’s tungsten and fluorspar output, supplying sectors such as semiconductor manufacturing, artificial-intelligence infrastructure, aerospace, energy and automotive production. These materials are critical because tungsten’s exceptional hardness and high-temperature resistance make it indispensable for precision components, while fluorspar is a key flux in steelmaking and aluminium production.
The move aligns with a broader trend of manufacturers seeking to diversify away from China-dominant supply chains. The earlier Elmet agreement already locks in roughly 1,250 tonnes of tungsten trioxide per year for more than eight years, generating about US$1.5 billion in revenue for MSR. The Sojitz partnership is expected to open a parallel channel into the Japanese market, complementing the existing U.S. link and enhancing the Vietnamese producer’s global footprint.
Future milestones and financial outlook
MSR is preparing for a listing on the Ho Chi Minh City Stock Exchange in 2027, after transitioning from Vietnam’s Unlisted Public Company Market. The company reported revenue of 25.69 trillion dong (approximately US$1 billion) and a net profit before minority interests of 4.35 trillion dong for the first nine months of 2026, surpassing the upper end of its annual guidance by about 70 percent. Dividends of 1,000 dong per share were paid in September, followed by a further 5,000 dong per share in October, bringing total cash dividends for the year to roughly 6.6 trillion dong.
Sojitz already maintains a diversified presence in Vietnam, with investments spanning industrial parks, food distribution, retail and logistics, including a joint beef-processing venture with Vinamilk. Securing a foothold in the country’s critical-minerals sector strengthens its ability to serve Japanese manufacturers demanding reliable, non-Chinese sources. The next step is the execution of definitive agreements, after which both parties will move toward operationalizing the distribution framework and finalizing the equity transfer.
