Nippon Steel & Sumitomo Metal Nisshin Steel and get rid of distressed assets
According to reports AsianReview Japanese Corporation Nippon Steel & Sumitomo Metal intends to get rid of some of its assets. The Japanese are looking for the sheet path for the transfer of assets to competitors. Step is to consolidate the industry in these difficult times of global glut the world market.
International antitrust Committee has already encouraged the above transaction. Representatives of Nippon Steel intend to submit a bid in February of next year. If all goes according to the planned scheme, the company will receive the status of the child. Now the Japanese fair trade Commission considering this matter. It is expected that by the end of this month, the issue will be resolved.
Earlier the Antimonopoly Commission issued disappointing for Nippon Steel & Sumitomo Metal Nisshin Steel and imprisonment. Controllers installed — both companies are holding companies hold too large a segment of the market. Under control at Nippon Steel & Sumitomo Metal Nisshin Steel is a huge part of the sales sheet of the products. As a result, the Antimonopoly Committee had many questions for both companies. And Japanese companies need to respond to them promptly, before the transaction.
Nippon Steel & Sumitomo Metal — the leader in the production of stainless steel in Japan. Nisshin Steel is ranked second in the country for the same indicators. The total share which is a company in the local market, exceeds fifty percent. During the transaction, the companies intend to comply with the rules of fair competition. For this part of the rights to operations will be transferred to the trading houses or competitors. The aim of Nippon Steel & Sumitomo Metal to increase stake in Nisshin Steel to 51 percent. Today, the company Nippon Steel & Sumitomo Metal owns only 8.3 percent of the securities. Acquisition scheme is quite common in the business. It is a combination of trend suggestions and selling of shares of smaller company.
According to specialists, the cost of this acquisition amounted to 76 billion yen. The equivalent of 651 million US dollars. When all the formalities are completed, both companies will be reorganized. Thus, it will be in the environment of international business bodø reduced competition.
Representatives of the company, commenting on the transaction, said that in the future the metallurgy market will be difficult.