Japanese steelmaking giants Nippon Steel and Sumitomo Metal Industries are likely to proceed with Indian steel producer Tata Steel as their partner in the Indian market, after their proposed merger.
Nippon Steel has a partnership with Tata and Sumitomo Metals is partnered with New Delhi-headquartered Bhushan Steel. The companies have to choose a single partner in India to avoid project duplication and competition issues.
Sources report that Tata Steel is the more likely choice since it is a bigger brand in the global arena.
As SteelOrbis previously reported, Nippon Steel and Sumitomo Metal Industries recently submitted their relevant application files for their integration plan to Japan's Fair Trade Commission (FTC), adding that they intend to complete their integration by October 2012.