Japanese steelmaker Kobe Steel has given public notice of the planned merger with the company of its wholly-owned stainless steel welding consumables manufacturer subsidiary Shinko Taseto Co., Ltd.
On April 28 this year, Kobe Steel's board of directors had passed a resolution to effect an absorption-type merger of Shinko Taseto. Merging Shinko Taseto into Kobe Steel's welding business will integrate operations by improving business efficiency, facilitating communication, and maintaining stable profits, the company said.
According to the public notice, Kobe Steel, as a surviving company, will absorb Shinko Taseto, which will be dissolved upon the merger. Kobe Steel will succeed to the rights and obligations of Shinko Taseto on October 1, 2010.
The merger will be conducted through simplified procedures under Article 796.3 of the Companies Act of Japan under which approval of the meeting of Kobe Steel shareholders will not be required. Moreover, Kobe Steel will neither issue new shares nor increase its capital as it owns all shares in Shinko Taseto.
In FY 2009, Shinko Taseto's sales amounted to JPY 5.71 billion ($65.45 million).