Nippon Steel in Talks to Buy Nisshin as Mills Eye Consolidation

Nippon Steel & Sumitomo Metal Corp., the world’s second-biggest steelmaker, said it’s in talks to take control of domestic partner Nisshin Steel Co., as Japan’s mills find themselves under pressure to consolidate in the face of a global glut.

The two companies will enter discussions to make Nisshin a subsidiary by March 2017, according to a statement from Nippon Steel to the Tokyo Stock Exchange on Monday. Nippon has an 8.31 percent stake in Nisshin, according to data compiled by Bloomberg.

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