2025.10.29

On October 29, 2025, Sumitomo Corporation announced its plan to make SCSK Corporation, its core IT subsidiary, a wholly owned subsidiary.

The acquisition will be executed through SC Investments Management Co., Ltd., a wholly owned subsidiary of Sumitomo, via a tender offer (TOB) targeting all remaining shares of SCSK not already owned by the group. The offer price is set at ¥5,700 per share, representing a 34% premium over the latest market price. The total acquisition value is estimated at around ¥882 billion, with the tender offer scheduled from October 30 to December 12, 2025. Once completed, SCSK will be delisted from the Tokyo Stock Exchange.

This large-scale deal is designed to accelerate Sumitomo’s digital transformation and AI-driven growth strategy across all business segments.

Strategic Background: Maximizing the Synergy Between Trading and Technology
Sumitomo Corporation: Shifting Beyond Resource Dependence
Sumitomo Corporation, a leading Japanese general trading company, has long been active in energy, metals, and infrastructure. However, in recent years, it has prioritized non-resource sectors to reduce volatility and enhance long-term stability. By integrating SCSK’s advanced IT and AI capabilities, Sumitomo aims to embed digital innovation across its global operations, improving productivity and enabling smarter decision-making.

SCSK: A Key IT Solutions Provider in Japan
SCSK is a major systems integrator and IT service provider offering solutions ranging from software development and cloud infrastructure to BPO (Business Process Outsourcing). With a client base of over 10,000 companies, SCSK has been central to Sumitomo’s technology strategy for over five decades. In recent years, it has also expanded through acquisitions such as Net One Systems, strengthening its network and cloud expertise. By fully integrating SCSK, Sumitomo aims to consolidate its digital resources and human capital, empowering group-wide DX (Digital Transformation) initiatives.

Purpose and Expected Outcomes: AI, Data, and Digital Talent Integration
The acquisition’s ultimate goal is to unify the group’s digital and AI development under one structure and create new value across business domains.
Key objectives include:
  • Leveraging SCSK’s AI, cloud, and system development expertise to support all group companies
  • Utilizing Sumitomo’s global data and business networks to create new digital solutions
  • Promoting efficiency and innovation in logistics, finance, manufacturing, and other sectors
  • Building a globally competitive “Trading × Technology” model
Sumitomo’s CEO commented that “Generative AI is redefining how businesses operate. By combining our business assets with SCSK’s technology, we aim to drive societal and corporate transformation.”

Acquisition Terms
  • Acquisition Method: Tender Offer (TOB)
  • Buyer: SC Investments Management Co., Ltd. (100% owned by Sumitomo Corporation)
  • Offer Price: ¥5,700 per share
  • Premium: Approx. 34% over market price
  • Total Value: Around ¥882 billion
  • Tender Offer Period: October 30 - December 12, 2025
  • Funding: Bridge loans to be refinanced through bonds and long-term loans
  • Completion Method: Squeeze-out via share consolidation if not all shares are tendered

Schedule
October 29, 2025: Announcement of the acquisition
October 30 – December 12, 2025: Tender offer period
February 2026 (tentative): Extraordinary shareholders meeting at SCSK for share consolidation
Spring 2026 (expected): Delisting and full integration into Sumitomo Corporation

Outlook: Building a Next-Generation Digital Trading Group
With SCSK under full control, Sumitomo Corporation is poised to accelerate its digital-first business model. By combining trading expertise with AI, IoT, and data analytics, the company plans to improve efficiency across its supply chain, manufacturing, and service operations. SCSK, in turn, will leverage Sumitomo’s global network to expand its reach beyond Japan and evolve into a comprehensive digital solutions powerhouse.

Conclusion
Sumitomo Corporation’s acquisition of SCSK marks more than a corporate restructuring — it’s a strategic step toward AI-driven business transformation. This M&A exemplifies how Japanese conglomerates are repositioning for the digital era, and similar moves are expected across the industry in the coming years.