Larger Overseas Investments May Be in Nippon Steel’s Future
09/29/2015 - Tokyo-based Nippon Steel & Sumitomo Metal Corp. has an eye out for merger and acquisition opportunities as it looks to expand its global customer base, company president Kosei Shindo told Reuters during an interview.
According to the news service, the company has no choice but to look for market opportunities beyond its borders as Japan’s population is shrinking. But in the near term, the company is allocating more capital dollars to its home mills, Shindo said.
"Our strategy is to reinforce our mother mills first. Then we expand overseas businesses," Shindo told Reuters in an interview.
"Once all of the old facilities are upgraded, we may go for a takeover bid or M&A, where the value could surpass 300 billion yen (US$2.5 billion)," he said, without giving details.
Nippon Steel is setting aside 1.35 trillion yen (US$11.3 billion) over the next three years for domestic investment, more than four times its overseas allocation, Reuters said.
"Our strategy is to reinforce our mother mills first. Then we expand overseas businesses," Shindo told Reuters in an interview.
"Once all of the old facilities are upgraded, we may go for a takeover bid or M&A, where the value could surpass 300 billion yen (US$2.5 billion)," he said, without giving details.
Nippon Steel is setting aside 1.35 trillion yen (US$11.3 billion) over the next three years for domestic investment, more than four times its overseas allocation, Reuters said.
