Nippon Steel Corporation announced the aim of making Sanyo Special Steel Co., Ltd., which is the company’s consolidated subsidiary, its wholly-owned subsidiary.
Nippon Steel adopted a resolution to acquire the shares of common stock of Sanyo Special Steel through a tender offer under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended).
The demand for special steel in Japan is expected to decrease and competition will intensify due to factors such as a decline in domestic demand due to population decline, China’s excess production capacity and aggressive exports, and the medium to long term trend toward the use of electric vehicles.
In order to respond appropriately and promptly to environmental changes and overcome the competition in the current severe business environment, and to further enhance the corporate value of both companies in the long term, the company believes that it is essential to strengthen competitiveness by constantly seeking optimal production systems from a group-wide perspective and promoting further integration and optimization by bringing together the management resources of both companies.
Nippon believes the best way to enhance the corporate value of both companies is to develop a cooperative relationship between them without being bound by the constraints of the current circumstances. Based on this belief, the company determined that it is desirable to make Sanyo Special Steel its wholly owned subsidiary.
Published February 2025
