DyStar Becomes a Wholly-Owned Subsidiary of Zhejiang Longsheng Group, Ending Longstanding Shareholder Disputes with a $5 Billion Deal

On January 5, 2026, DyStar Group, a century-old specialty chemicals and dyes manufacturer, officially announced that it has become a wholly-owned subsidiary of Zhejiang Longsheng Group Co., Ltd. (“Zhejiang Longsheng”). This change in controlling ownership marks a key step forward in resolving long-standing disputes, achieving strategic synergy, and advancing global business expansion.

I. Transaction Background and Acquisition Overview

On May 29, 2025, Zhejiang Longsheng’s board of directors approved a proposal to acquire the remaining minority interests in DyStar. The plan involved a combination of a share buyback and equity purchase to acquire the remaining 37.57% of DyStar shares, thereby gaining full control of the company. According to the transaction agreement, the total price for this equity acquisition was approximately USD 702 million (approximately RMB 5.017 billion).

The strategic purpose of this acquisition is to fully resolve the long-standing litigation between Zhejiang Longsheng and India’s KIRI Industries Limited (“KIRI”) regarding DyStar’s shares, while supporting Zhejiang Longsheng’s long-term goal of becoming a leading global specialty chemicals company.

The transaction was completed on December 30, 2025, with subsequent registration of the shareholding changes at relevant authorities in Singapore. As of December 31, 2025, Zhejiang Longsheng officially gained full ownership of DyStar.

II. Transaction Structure and Shareholding Changes

The acquisition was implemented in two parts:

DyStar Share Buyback – DyStar repurchased 20% of shares through designated accounts.

Acquisition of Minority Interests – A wholly-owned subsidiary of Zhejiang Longsheng paid for the remaining 17.57% of shares.

These two components together accounted for the full equity transfer. After completion, Zhejiang Longsheng indirectly holds 100% of DyStar’s shares through three wholly-owned subsidiaries.

The post-transaction shareholding structure of DyStar is as follows:

III. Dispute Resolution and Business Impact

The completion of this acquisition marks the formal end of the long-standing litigation between Zhejiang Longsheng and KIRI over DyStar’s shares. Following the transaction, the two directors appointed by KIRI resigned, streamlining the corporate governance structure and paving the way for unified management and coordinated development.

As of December 30, 2025, DyStar officially became a wholly-owned subsidiary of Zhejiang Longsheng. Going forward, all net profits generated by DyStar will belong to the parent company’s shareholders, which is expected to significantly enhance Zhejiang Longsheng’s future net profit attributable to shareholders.

DyStar stated that officially becoming a wholly-owned subsidiary marks the beginning of a “new phase of stable governance, clear strategic direction, and long-term growth.”