Mitsui Acquiring Hugo Neu Portion of Sims Group

Hugo Neu Corp. has entered into an agreement with Mitsui & Co., to acquire Hugo Neu’s 19.9 percent share of Sims Group Ltd. for around $500 million. Mitsui is a Japanese trading company.

Mitsui recognizes scrap recycling as industrial solutions to environmental problems, and has set recycling business as one of its key businesses in its medium-term management outlook. Mitsui expects to enhance this business through this acquisition.

If completed, the deal would close by early next month. Upon completion, Mitsui will be granted substantially similar rights to those previously enjoyed by Hugo Neu. These include the right of Mitsui, subject to Board Nomination Committee consideration, to nominate one director and another independent director to the Board for as long as Mitsui holds at least 15 percent of the ordinary shares on issue in the company.

When the sale is complete John Neu will resign as a director of Sims Group.