Dec 9, 2011 -- Japanese regulators will approve a plan by Nippon Steel Corp. (5401) and Sumitomo Metal Industries Ltd. (5405) to combine and create the world’s second-largest steelmaker by October next year, the Asahi newspaper reported.
The Japan Fair Trade Commission will announce the approval of the planned merger by the end of this month, the newspaper said, without disclosing where it obtained the information.
The commission may ask the steelmakers to resolve a competition problem for steel sheet pile because the combined market share exceeded 70 percent in the financial year ended in March 2010, the report said. The companies may sell or dispose of production facilities for the steel product.
Officials at the commission couldn’t be reached for comment when contacted by Bloomberg. Nippon Steel hasn’t heard anything about the FTC’s review of the merger, spokesman Hiroshi Nakashima said today by telephone. Sumitomo Metal spokesman Akio Yokoyama said the company is not in a position to comment.