Nippon Steel, the largest steel company, has increased its shareholding ratio to more than 19% after being pointed out by the Japan Fair Trade Commission regarding the takeover bid for TOB = shares made to wire rope maker Tokyo Rope. The company announced that it will sell its shares in the future in order to reduce it to less than 10% again.
Nippon Steel has conducted a hostile takeover bid for Tokyo Rope to strengthen its influence on management, saying that its business performance has been sluggish. It increased from 9% level to 19.91%.
Nippon Steel has said that it has maintained its management independence by keeping the ratio below 20%, but according to the announcement, the Fair Trade Commission has examined whether this capital relationship will affect market competition. It was pointed out that it corresponds to the target "joint relationship".
For this reason, the company will sell its shares in the future so that the shareholding ratio will be 10% or less again, and will determine the timing of the sale by observing the stock price trends of Tokyo Rope.
The company says that it has achieved the purpose of rebuilding its management structure and will continue to contribute to the recovery of business performance as the largest shareholder.
On the other hand, Nippon Steel also announced the business outlook for the year to March next year, and said that the production for automobiles, which had been depressed due to the corona disaster, will recover further, and the final profit of the entire group will be 2400 so far. It has been revised upward from 100 million yen to 370 billion yen.