Katakura Steel Tube to Become an NSSMC Subsidiary
Dec. 06, 2017
Nippon Steel & Sumitomo Metal Corporation
Katakura Steel Tube Co., Ltd.
Katakura Steel Tube to Become an NSSMC Subsidiary
Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Katakura Steel Tube Co., Ltd. (“Katakura Steel Tube”), an equity-method affiliate of NSSMC (with a 24.9% shareholding), have agreed that NSSMC will acquire additional shares of common stock of Katakura Steel Tube and make it a subsidiary (with a stake of around 80%).
1. Purpose of the Transaction
In the area of steel tubes for automobiles and construction machinery, strengthened environmental regulations and other reasons are expected to increase manufacturers’ requirements for high-performance components, including those of lightweight and high-fatigue-durability products. To satisfy such requirements, NSSMC and Katakura Steel Tube have agreed that it should be best for both companies to bring their technological strengths together: namely, NSSMC’s strength in manufacturing steel tubes and Katakura Steel Tube’s strength in cold drawing processing. On December 6, 2017, a stock acquisition agreement was executed whereby NSSMC will acquire shares of common stock of Katakura Steel Tube held by its major individual stockholders to become Katakura Steel Tube’s 80% stockholder. After this transaction, Katakura Steel Tube, as a subsidiary of NSSMC, will be better positioned to develop and provide high-grade products which satisfy its customers’ requirements.
2. Expected Schedule
December 6, 2017: | A stock acquisition agreement is executed. |
Around late January 2018: | After obtaining a clearance from the Japan Fair Trade Commission, NSSMC implements acquisition of the common stocks and Katakura Steel Tube becomes a subsidiary of NSSMC. |
Around April 2018: | Katakura Steel Tube changes its trade name to Nippon Steel & Sumikin Katakura Tube Co., Ltd. |
3. Overview of NSSMC and Katakura Steel Tube
Trade Name | Nippon Steel & Sumitomo Metal Corporation | Katakura Steel Tube Co., Ltd. |
Business Activities | teelmaking and steel fabrication; engineering and construction; chemicals; new materials; system solutions | Cold-drawn tubes (extensible tubes) |
Establishment | 1950 | 1955 |
Head Office Location | 6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo | 1-21, Fuso-cho, Amagasaki- shi, Hyogo Prefecture |
Name and Title of the Representative | Kosei Shindo, Representative Director and President | Yasufumi Imamoto, Representative Director and President |
Net Sales (Consolidated Basis) | 4,632.8 billion yen (FY 2016) | 6.6 billion yen (FY 2016) |
Capital | 419.5 billion yen | 100 million yen |
Number of Employees | 24,822 (as of March 31, 2017) | 127 (as of March 31, 2017) |