Today, Nippon Steel Corporation (President: Shoji Muneoka; “Nippon Steel”) and Sumitomo Metal Industries, Ltd. (President: Hiroshi Tomono; “Sumitomo Metals”) (collectively, the “Companies”) received from the Japan Fair Trade Commission (“JFTC”) a “Notification To The Effect That a Cease and Desist Order Will Not Be Issued”, which means that the business integration of Nippon Steel and Sumitomo Metals (the “Business Integration”) has thereby been approved by the JFTC.
The Companies agreed to commence their consideration of the Business Integration in February 2011, and the JFTC has been conducting its review of the Business Integration since the submission by the Companies on May 31, 2011 of “Notification of a Plan Regarding The Merger”. The Companies sincerely appreciated the intense review of the JFTC in a short period and understand that the JFTC has conducted its review with due regard to the actual conditions of competition in the relevant markets.
The Companies have agreed to proceed with the Business Integration, aiming to become “The Best Steelmaker with World-Leading Capabilities.” Since the Business Integration has been approved by the JFTC, the Companies will further accelerate their efforts to prepare for the Business Integration. The Companies will continue to make every effort to obtain any necessary approvals from the relevant authorities outside of Japan. The Business Integration is scheduled to be fully consummated on October 1, 2012 after a merger agreement is executed in April and such merger agreement is approved at the Companies’ respective shareholders’ meetings in June 2012.