TOKYO Nippon Steel & Sumitomo Metal Corp.s two trading wings, Nippon Steel Trading Co. and Sumikin Bussan Corp., are set to merge Oct. 1.
Nippon Steel Trading will absorb Sumikin Bussan in a 1.08-for-1 share swap.
The move is aimed at increasing efficiency amid an increasingly competitive environment, and to allow the new company to accelerate its global strategy, particularly in emerging economies, and to expand its customer base both at home and overseas.
The new company will aim to achieve a pre-tax profit of 30 billion yen ($307 million).
A version of this article was first published by AMM sister publication Steel First.