At present, the merger of Japan's Nippon Steel Corporation (hereinafter referred to as "Nippon Steel") and Sumitomo Metal Industries Co., Ltd. (hereinafter referred to as "Sumitomo Metal") has been approved by domestic and foreign institutions. According to the procedure, the merger plan will be approved at the respective shareholder conferences of the two companies in June and the merger will be completed in October. Since then, Nippon Steel will become a "new day iron and live gold", and the international ranking has also greatly improved. The merger deal between Nippon Steel and Sumitomo Metals, with a total price of US$22.45 billion, is the most important merger transaction in the Japanese steel industry in a decade and also the largest non-financial M&A case in Japan. The combined output of Nippon Steel & Sumitomo Metal is approximately 45.4 million tons, which will account for almost half of Japan's steel production of 110 million tons in 2011. In line with the ranking of the world's steel companies' crude steel production announced by the World Steel Association in 2011, Nippon Steel & Sumitomo Metal will rank fourth in the rankings after ArcelorMittal, Hebei Iron and Steel Group and Angang Group. Of course, the goal of Nippon Steel to live in Kim is not limited to this. Its goal is to increase revenue by about 150 billion yen (about 1.9 billion US dollars) in three years, and the global production target of new enterprises is 60 million to 70 million tons. The combination of the strong global alliance and the new Nippon Steel and Sumitomo Metal seems to be perfect. Industry analysts believe that, first of all, the merger of the two companies is complementary, and can make the company stronger in the global competition. From a technical point of view, Nippon Steel has an advantage in the use of special steel plates and electromagnetic steel plates for motor core components; Sumitomo Metals is leading the way in seamless steel pipes with high strength. In the global market, Sumitomo Metal and Europe are actually monopolized. The merger of Japan's two major steel giants is to further enhance competitiveness in the fierce global competition through complementary technological advantages. Second, the merger of the two major steel giants in Japan has further expanded in scale. After the merger of the two companies, it will occupy half of the Japanese steel market, and more importantly, it will increase its ranking in global steel companies. Although it is far less than the world's largest ArcelorMittal steel company in terms of output, it can reach the world's leading level in terms of technology and comprehensive strength. Again, reducing costs is an important part of the combined synergy goal. The two companies plan to achieve an annual savings of 150 billion yen through internal collaboration within three years. In addition, the increased size of the merger of the two companies can add a lot of bargaining to the negotiations with the iron ore giants. Next goal: Kobe Steel is suffering from weak domestic demand in Japan. Many industries in Japan, including the steel industry, including well-known companies such as Sony, Panasonic and Toshiba, have suffered losses. Even Sharp, which has never suffered losses in history, has exposed its first loss. Under pressure, more and more companies are seeking to merge alliances or shift production to foreign countries. After the merger, it is likely that more Japanese companies will follow suit, and the first and foremost is steel companies. After Nippon Steel and Sumitomo Metal announced the merger news, the trend of the Kobe Steel Works, which was cross-shared with the two companies, began to attract attention and was pushed to the forefront of mergers and acquisitions. From the types of products sold by Kobe Steel, the proportion of aluminum and construction machinery is relatively high, and the proportion of steel business in total sales revenue is less than 50%. In order to cope with the accelerated restructuring of world steel companies since 2000, Nippon Steel, Sumitomo Metal, and Kobe Steel have reached a cross-shareholding agreement in December 2007 in order to avoid their own acquisition by other companies. Nippon Steel and Sumitomo Metal each hold a 3.45% stake in Kobe Steel, while Kobe Steel holds 0.77% of Nippon Steel and 2.34% of Sumitomo Metal. A senior executive of Nippon Steel said that Nippon Steel is looking forward to deepening cooperation with Sumitomo Metal and Kobe Steel. However, some industry analysts pointed out that if Nippon Steel and Sumitomo Metal are pulled into Kobe Steel to form a combination of the three strong, the market share of certain products will be too high, which may make it difficult to obtain the approval of the Japan Fair Trade Commission. However, how can the newly acquired Nippon Steel & Sumitomo gold be able to give up such a suitable acquisition target to the Kobe Steel Works? And for the international competitors eager to enter the Japanese steel market, it is even more in the eyes. . As early as the first two years, ArcelorMittal has been very active in entering the Japanese market. With its consistent approach to mergers and acquisitions, how can we turn a blind eye to such an opportunity? Similarly, the Chinese steel giant, which ranks among the top steel producers in the world, is naturally not interested in Kobe Steel, which has advanced steel technology. In addition, some people in the industry pointed out that Kobe Steel and Steel Corporation may strengthen cooperation with Japan Steel Engineering Holding Co., Ltd., which has taken an independent route, and finally merge. Chinese steel companies have found their way out in Japan, and the country’s Fair Trade Commission has approved the merger of Nippon Steel and Living Gold on the condition that anti-monopoly measures must be taken in some areas of business. However, in China, it is surprising that the Ministry of Commerce did not attach this condition to the approval of steel enterprise restructuring. For the global steel industry, the huge merger of Nippon Steel Corporation and Sumitomo Metal Co., Ltd. is another milestone after the merger of Arcelor and Mittal in 2007, and is taken by the Japanese giants in response to the meager profit of the steel industry. Active response measures. In China, the restructuring of steel companies has faltered. Although in recent years, Hebei Iron and Steel, Baosteel, Shandong Iron and Steel, Wuhan Iron and Steel and Anshan Iron and Steel have also reorganized a number of domestic steel companies, but due to the interests of local governments and other reasons, the strong alliance of steel companies is difficult to achieve, the restructuring process is difficult to say Significant progress has been made. In the face of the cold winter of the steel industry, some domestic steel giants have different performances, trying to pan for gold from related industries. Some time ago, General Manager Deng Qilin of WISCO held a press conference in Wuhan to announce that it plans to invest 39 billion yuan to develop overseas mineral resources development, steel deep processing, international trade, high-tech, coal chemical industry, industrial gas, The non-steel industry related to the steel industry, such as the logistics industry, comprehensive utilization, and logistics services, will increase the income ratio of the non-steel industry to 30% of the Group's total revenue. Deng Qiaolin mentioned that in terms of logistics services, WISCO will launch a green breeding industry this year and prepare to build a million pig farms. Since then, "Wugang pig raising" has become a hot topic, leading to a round of controversy. In fact, since last year, large steel companies, including Wuhan Iron and Steel, Baosteel, Anshan Iron and Steel, Hebei Iron and Steel Group, have shifted their attention to some non-steel industries in order to cope with losses and seek profit. According to relevant statistics, in 2011, the proportion of crude steel output of the 10 largest steel groups in China accounted for less than 50% of the total crude steel in the country. This is far from the goal of the top five steel companies in the domestic iron and steel industry adjustment and revitalization plan to account for more than 45% of the national production capacity.
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