Nippon Steel and Sumitomo Metal Industries announced on Tuesday their shareholders approved final agreement for the proposed merger at the general meetings held on the day. The combined company, Nippon Steel & Sumitomo Metal will start operation on October 1 as scheduled. The new company targets the best steel maker with world leading capabilities. Nippon Steel & Sumitomo Metal will release the earnings target and strategy after the merger. Nippon Steel allocates 0.735 shares to each share of Sumitomo Metals.Nippon Steel’s president Shoji Muneoka will assume chairman and chief executive officer of Nippon Steel & Sumitomo Metal. Sumitomo Metals’ president Hiroshi Tomono will assume president and chief operating officer. The new company targets annual around 150 billion yen of synergy in 3 years after the merger by realizing better global operation, technology and cost structure. Nippon Steel’s raw steel output was 33.4 million tonnes in 2011 and Sumitomo Metals’ output was 12.7 million tonnes in 2011. The combined company will be second position in world raw steel output ranking after world largest steel maker, ArcelorMittal. The combined company targets 60-70 million tonnes of global production.
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