Japan's largest steelmaker Nippon Steel Corp and third largest Sumitomo Metal Industries have agreed to boost cooperation, with the aim of merging three subsidiaries and beginning studies on the integration of their structural steel sheet and civil engineering materials businesses.
Nippon and Sumitomo aim to sign formal agreements in May and integrate the operations by October in an effort to make the businesses more competitive.
Japanese steelmakers have been stepping up cooperation as they build their defense against possible hostile foreign takeovers.