The most popular two Japanese steel companies merg

2022-08-04
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At present, the merger of Nippon Steel Corporation (hereinafter referred to as Nippon Steel) and Sumitomo Metal Industry Corporation (hereinafter referred to as Sumitomo Metal) has been approved by relevant institutions in Japan and abroad. According to Cheng, the merger of Nippon Steel Corporation (hereinafter referred to as Nippon Steel) and Sumitomo Metal Industry Corporation (hereinafter referred to as Sumitomo Metal) has been approved by relevant institutions in Japan and abroad. According to the procedures, the merger plan will be approved at the respective shareholders' meeting of the two companies in June, and all mergers will be completed in October. From then on, Nippon Steel will become Nippon Steel Sumikin, and its international ranking will be greatly improved

the merger transaction between Nippon Steel and Sumitomo Metal, with a total price of US $22.45 billion, is the most important merger transaction in Japan's steel industry in the past decade and the largest non-financial merger in Japan

the combined Nippon Steel and Sumikin steel output is about 45.4 million tons, accounting for almost half of Japan's steel output of 110million tons in 2011. According to the ranking of crude steel output of global steel enterprises published by the world iron and Steel Association in 2011, Nippon Steel and Sumitomo will rank fourth behind ArcelorMittal, Hebei Iron and Steel Group and Angang Group

of course, the goal of Nippon Steel and Sumikin is more than that. Its goal is to increase the benefit by about 150billion yen (about 1.9 billion US dollars) within three years, and the global output target of new enterprises is 60million to 70million tons

The merger of Nippon Steel and Sumitomo Metal seems perfect. Industry analysts believe that, first of all, the merger of the two enterprises is complementary to each other, and can make enterprises stronger in the global competition. Technically, Nippon Steel has advantages in special steel plates and electromagnetic steel plates used as core components of motors; Sumitomo Metal takes the lead in seamless steel pipes with high strength. In the global market, Sumitomo Metal and European companies are in fact in a monopoly position. The merger of the two major steel giants in Japan aims to further improve their competitiveness in the fierce global competition through complementary technological advantages

secondly, the merger of the two major steel giants in Japan will further expand their popularity, which requires automobile manufacturers to change their ideas and further expand. After the merger, the two enterprises will occupy half of the Japanese steel market, and the most important thing is to improve their ranking in the global steel enterprises. Although its output is far less than that of ArcelorMittal, the world's largest steel company, it can reach the world leading level in technology and comprehensive strength

thirdly, cost reduction is an important goal of merger collaboration. The two companies plan to achieve the goal of saving 150billion yen a year through internal coordination within three years. In addition, the increased scale of the merger of the two enterprises can add a lot of chips to the negotiations of iron ore giants

next goal: Kobe iron and steel

due to the sluggish domestic demand in Japan, many industries in Japan, including the steel industry, including the well-known Sony, Panasonic, Toshiba and other companies, have suffered losses, and even sharp, which has never suffered a loss in history, has revealed its first loss. Under the heavy pressure, more and more enterprises are either seeking merger and alliance, or transferring manufacturing to foreign countries

after the merger, it is likely that more Japanese enterprises will follow suit, and the steel enterprises will bear the brunt

after Nippon Steel and Sumitomo Metal announced the merger, the trend of Kobe Steel Co., Ltd., which has cross shareholding with the two companies, began to attract attention and was pushed to the forefront of merger and reorganization

in terms of the types of products sold by Kobe Steel, aluminum and construction machinery account for a high proportion, and the steel business accounts for less than 50% of its total sales revenue

in order to cope with the accelerated restructuring of world steel enterprises since 2000, Nippon Steel, Sumitomo Metal and Kobe Steel have reached a cross shareholding agreement in december2007 in order to avoid being acquired by other enterprises. Nippon Steel and Sumitomo Metal each hold 3.45% shares of Kobe Steel, while Kobe Steel holds 0.77% shares of Nippon Steel and 2.34% shares of Sumitomo Metal

a senior manager of Nippon Steel said that Nippon Steel is looking forward to deepening its cooperation with Sumitomo Kim, which has only one control mode of speed, and Kobe Steel. However, some industry analysts pointed out that if Nippon Steel and Sumitomo Metal are pulled into the three strong alliance formed by Kobe Steel, the market share of some products will be too high, which may be difficult to obtain the approval of the Japan Fair Trade Commission. However, after the merger, how can Nippon Steel and Sumikin give up such a suitable acquisition object as Kobe Steel

the international competitors who are eager to break into the Japanese steel market are even more concerned. As early as the first two years, ArcelorMittal has been very active in entering the Japanese market. With its consistent practice of wanton mergers and acquisitions, how can such an opportunity be ignored

"one year later, similarly, China's steel giants, which occupy the top places in the output of world steel enterprises, will naturally have no low interest in Kobe Steel Institute with advanced steel technology

in addition, some people in the industry pointed out that Kobe Steel may strengthen the cooperative relationship with the independent Japanese steel engineering holding company and finally merge

Chinese steel enterprises seek their own way out

in Japan, the Fair Trade Commission approved the merger of Nippon Steel and Sumitomo on the condition that anti-monopoly measures must be taken in some business areas. However, in China, it is somewhat surprising that this condition is not attached to the approval of the Ministry of Commerce for the restructuring of steel enterprises

for the global steel industry, the giant merger of Nippon Steel and Sumitomo Metal is another milestone after the merger of Arcelor and Mittal in 2007, and a positive response taken by Japanese giants to cope with the low profit situation in the steel industry

in China, the restructuring of iron and steel enterprises is faltering. Although in recent years, iron and steel giants such as Hebei Iron and steel, Baosteel, Shandong Iron and steel, Wuhan Iron and steel and Anshan Iron and steel have also successively restructured a number of domestic iron and steel enterprises, due to the interest pattern of local governments and other reasons, it is difficult to realize the strong alliance of iron and steel enterprises, and it is difficult to make significant progress in the restructuring process. In the face of this cold winter in the iron and steel industry, some domestic iron and steel giants performed differently and tried to find gold from related industries

some time ago, dengqilin, general manager of WISCO, held a press conference in Wuhan, announcing that during the 12th Five Year Plan period, it plans to invest 39billion yuan to develop non steel industries related to the main iron and steel industry, such as overseas mineral resources development, steel deep processing, international trade, high and new technology, coal chemical industry, industrial gas, logistics industry, comprehensive utilization, logistics service, etc., and increase the income proportion of non steel industries to 30% of the group's total income

dengqilin mentioned that in terms of logistics services, WISCO will also carry out green breeding this year and prepare to build 10000 pig farms. Since then, pig raising in WISCO has become a hot topic and attracted a round of debate

in fact, since last year, large iron and steel enterprises including WISCO, Baosteel, Angang and Hebei Iron and steel group have shifted their industrial attention to some non steel industries to cope with losses and seek profits

according to relevant statistics, in 2011, the crude steel output of the top 10 iron and steel groups in China accounted for less than 50% of the total crude steel in China. This is far from the goal that the top five domestic steel enterprises' production capacity should account for more than 45% of the national production capacity proposed in the steel industry adjustment and revitalization plan

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