Japanese steel trader Mitsui & Co. has announced that it has entered into a memorandum of understanding (MOU) with Japan-based Nippon Steel & Sumikin Bussan Corporation (NSSB), the trader part of Japan steelmaker Nippon Steel & Sumitomo Metal Corp. (NSSMC), pursuant to which both parties will commence discussions regarding transferring a part of the iron and steel products business of the Mitsui to NSSB and regarding Mitsui's additional acquisition of shares in NSSB to raise the ratio of its voting rights and to strengthen the capital relationship of both companies and deepen their collaborative relationship.
According to Mitsui’s statement, it has been considering strengthening its earnings base through reorganization of its business toward further growth of steel business since the changes in the domestic and overseas business environment surrounding the steel industry have been accelerating, and it is expected that competition will be increasingly severe. Therefore, with the agreement, both companies aim to enhance business competitiveness by constructing a firm earnings base by combining the sales network, manufacturing and processing bases, sales force, and customer base of both companies.