(Reuters) - Japan’s Toray Industries Inc (3402.T) will buy U.S-based Zoltek Cos ZOLT.O for $600-$700 million to increase its share of the global carbon fiber market to 30 percent, the Nikkei reported.
Toray plans to start producing lower-priced carbon fiber with the deal, the business daily said.
Zoltek’s products, used in construction materials and autoparts, are priced at about 60 percent of Toray’s high-performance carbon fiber, the paper said.
Zoltek could not be reached for a comment.
Shares of the company, which had a market capitalization of $565 million as of Wednesday’s close, were up 12 percent on the Nasdaq on Thursday afternoon at $18.35.
Carbon fiber is lighter than steel, but higher prices have limited its use, the paper said.
The deal expected to be announced on Friday.
($1 = 98.96 Japanese yen)
Reporting by Mridhula Raghavan in Bangalore; Editing by Joyjeet Das