Nippon Steel, Sumitomo Metals to Submit Merger Plan in March

Nippon Steel and Sumitomo Metal Industries plan to submit a formal proposal for merger to Japan Fair Trade Commission in March. The commission reviews during 30 days after the acceptance. When the commission requires additional information, the review could take more time up to 90 days after the additional data acceptance. The commission will finish the review in August at the latest.

The commission reviews the proposed merger of Nippon Steel and Sumitomo Metals considering their share in global steel market while the commission also checks the availability of alternative offshore sourcing for domestic steel users. The commission comprehensively checks the merger in many aspects including impact on potential new comers at home and abroad and bargaining power of the steel users. The commission could approve the merger even with higher domestic market shared products if steel buyers can purchase offshore products.