Nippon Steel and Sumitomo Metals Apply Business Reconstruction Plan to METI on July 1

Nippon Steel and Sumitomo Metal Industries apply their business reconstruction plan along amended Industrial Revitalization Act to Ministry of Economy, Trade and Industry (METI) on July 1. Both companies’ C-Level executives will meet Mr. Kazuo Matsunaga, permanent secretary of METI and Mr. Masanori Suzuki, chief of manufacturing industrial bureau. The law was revised in order to Japanese enterprises’ international competitiveness. Nippon Steel and Sumitomo Metals can receive supports for tax system or financing from the government if the plan is authorized.

METI is strengthening relationship with Japan Fair Trade Commission and made up the special company law for facilitation of enterprises’ integration as well as the two-stage finance system to support enterprises’ long term financing. Mr. Banri Kaieda, Minister of METI, feeds information of overseas steel market or overseas steel makers to the Commission and supports the amalgamation.

The Commission announced on Thursday they start the second-stage review of the business combination by Nippon Steel and Sumitomo Metals. The Commission conducted the report of the first-stage review to the both companies on June 30 and required additional information. The Commission will start the second-stage review after the application of additional information by the both companies and judge approval or disapproval of the amalgamation within 90 days.