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Japan's No. 1 Steelmaker Strikes Deal to Buy Out Its No. 4 Rival
05/16/2016 - Japan’s largest steelmaker is acquiring a majority stake in the country’s fourth-largest producer, Nisshin Steel Co., as a defense against the supply glut, reports The Japan Times.
According to The Times, Nippon Steel & Sumitomo Metal Corp. will acquire a 51 percent stake in Nisshin through a tender offer, and, if necessary, the acquisition of new shares issued by Nisshin.
In a statement, the companies said the world’s excess steelmaking capacity is prompting the combination.
“While there are indications that the excess of production capacity in China will be corrected, it will likely take considerable time,” the companies said. In the meantime, the environment is likely to worsen, the companies said.
