Nippon Steel Corp and Sumitomo Metal Industries intend to merge and create the world’s second-largest steelmaker. This move comes as an effort to stand up against tough competition from Asian rivals and offset decreasing demand from domestic automakers. The merged company will have an exceptional product line-up ranging from construction steel, auto steel sheets, thick plates to seamless pipes. The merger, which would likely see Nippon Steel acquiring Sumitomo Metal, is subject to approval from Japan’s Fair Trade Commission (FTC). Together, the companies would rank No.2 in the world; based on 2009 crude steel production, Nippon Steel ranked 4th in the world while Sumitomo Metal placed 19th.
