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Nippon Steel & Sumitomo Metal Commencement of Discussions Regarding Making Sanyo Special Steel a Subsidiary of Nippon Steel & Sumitomo Metal and Other Matters

Steel News - Published on Fri, 16 Mar 2018

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Nippon Steel & Sumitomo Metal Corporation and Sanyo Special Steel Co Ltd have commenced discussions to explore opportunities to make Sanyo Special Steel a subsidiary of NSSMC and to strengthen the special steel businesses of both companies. The target date of the Proposed Transaction is March 2019. The special steel businesses of both companies currently focus on markets in Asia, but NSSMC’s planned acquisition of Ovako AB, which NSSMC intends to close in the first half of 2018, will help the companies to work toward a global business promotion system, with opportunities of enhanced cooperation among NSSMC, Sanyo Special Steel, and Ovako.

Matters such as the specific method of the Proposed Transaction, the shareholding ratio of NSSMC in Sanyo Special Steel and other matters are yet to be discussed, and such matters will be publicly disclosed if an when an agreement is reached. Furthermore, Sanyo Special Steel will continue to be a listed company after it becomes NSSMC’s subsidiary.

In order to respond to the globalization of both their domestic and foreign clients and meet the various needs of their clients, beginning with the automobile industry, regarding the manufacture and sale of special steel, both companies have agreed to commence the Discussions regarding the Proposed Transaction with the goal of strengthening their fundamental businesses and technological capabilities and progressing toward making adjustments and other such changes with an eye toward global business development, each bringing their management resources to bear in the endeavor.

Both companies intend to consider the matter in detail, including cooperation with Ovako.

NSSMC and Sanyo Special Steel will immediately commence the Discussions and, if and when an agreement is reached, plan to execute a definitive agreement, with the target date being August 2018. After this, upon execution, both companies plan to consummate the Proposed Transaction, with the target date being March 2019 after obtaining approvals by domestic and overseas competition authorities and other required procedures are taken.

Tentative timeline, assuming successful negotiations:
(1) August 2018 (Target): Execution of the definitive agreement
(2) March 2019 (Target): Sanyo Special Steel becoming NSSMC’s subsidiary

Source :

Posted By : Nanda Koijam on Fri, 16 Mar 2018
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