AGC Terminates Discussions on Architectural Glass Business Integration

AGC Inc. has announced that it decided during a recent board of directors meeting to terminate discussions with Central Glass Co. on the integration of their architectural glass businesses in Japan.

“With the aim of increasing the management and capital efficiency, improving the profitability and enhancing the business foundation of the sluggish architectural glass business in Japan, AGC concluded a memorandum of understanding with Central Glass on December 9, 2019, regarding the integration of their architectural glass businesses, and had undergone detailed studies and discussions toward the completion of the business integration at the end of December 2020,” reads a statement from AGC. “Due to COVID-19 and other factors causing a delay in the negotiations, on October 29, 2020, AGC announced the rescheduling of the business integration with the target completion period set in the fourth quarter of 2021 (from October 1 until December 31, 2021). As a result of the discussions, however, AGC has decided to terminate the discussions with Central Glass Co. as they have different views on the conditions of the business integration and have concluded that it will be impossible to reach an agreement.”

AGC will continue to strive for profitability improvement and enhancement of the business foundation of the architectural glass business in Japan by taking measures such as expanding and exploring high value-added product markets and building a manufacturing structure corresponding to the demand, according to the company.

AGC states that the termination of discussions will not impact its business performance.