Joint Ventures and Business Developments in Asia: 1999

Strategic Insights -

In a series of significant developments, Asian companies were actively engaging in joint ventures, mergers, and partnerships to drive growth and expand their reach. One such initiative was the joint allocation of Rp200 billion for community development by PERTAMINA/CALTEX INDONESIA over the next four years. This allocation was to be focused on education, health, income improvement, and culture. Meanwhile, Equitable Banking Corporation underwent a merger with Philippine Commercial International Bank, while BASF Corp. and Royal Dutch/Shell established a joint venture in Singapore to manufacture styrene and propylene oxide. Additionally, Japan's Chiyoda Mutual Life Insurance Co. announced plans to double its capital and spin off certain operations to enhance its competitiveness.

Key Takeaways:

  • PERTAMINA/CALTEX INDONESIA will allocate Rp200 billion for community development over the next four years (1999-2003) with a focus on education (67%), health (12%), income improvement (12%), and culture.
  • Equitable Banking Corporation's plan of merger with Philippine Commercial International Bank has been approved by the Securities and Exchange Commission.
  • BASF Corp. and Royal Dutch/Shell will establish a joint venture, BASSEL Eastern (Pte) Ltd., in Singapore with a 50-50 stake and $500 million in construction costs.
  • Japan's Chiyoda Mutual Life Insurance Co. will increase its funds by 50 billion yen to 101 billion yen and spin off corporate insurance sales and insurance money payments operations to reduce expenses.
  • The merger of Equitable Banking Corporation and Philippine Commercial International Bank is expected to create a stronger financial entity in the region.
  • The joint venture between BASF Corp. and Royal Dutch/Shell will enable the companies to tap into Singapore's strategic location and skilled workforce.

Statistics:

  • Rp200 billion will be allocated for community development
  • 67% will be allocated for education programs
  • 12% will be allocated for health programs
  • 12% will be allocated for income improvement programs
  • 9% will be allocated for cultural programs
  • $500 million will be invested in construction costs for BASSEL Eastern (Pte) Ltd.
  • 50 billion yen will be added to Chiyoda Mutual Life Insurance Co.'s funds
  • 101 billion yen will be the total funds for Chiyoda Mutual Life Insurance Co.

Sources:

  • Asia Pulse http://www.asiapulse.com
  • Company disclosure to the Philippine Stock Exchange on Sept 6, 1999.
  • COMTEX http://www.comtexnews.com
  • Official statement from BASF Korea on Sept 7, 1999.