Japan's leading chemicals producer, Mitsubishi Chemical Holdings is pondering over the issue of acquiring its rival Mitsubishi Rayon in a deal value about $2.1 billion.

Current move of Mitsubishi Chemical would help the company in diversifying into higher margin specialty products and rivaling international chemicals companies such as BASF and Dow Chemical.

Speaking on the topic, Shuichi Nishimura, an analyst said, "It would be industry consolidation, which we have been saying is necessary for the Japanese chemicals sector."

However, both companies claimed on Monday that there was nothing specific to make known.

Mitsubishi Rayon was valued around a third of Mitsubishi Chemical at Y1.96 billion at trading on Monday.

It may be noted here that Mitsubishi Rayon was separated from Mitsubishi Chemical in 1950.

After acquisition the company would pocket yearly revenue worth about $33.9 billion.

The acquirement news sent Mitsubishi Rayon's shares about 27% up to close at Y327. Shares of Mitsubishi Chemical rose 4.7% to close at Y443.