Japan's biggest steelmaker Nippon Steel Corp. (Nippon Steel) has announced that it has completed its payments in connection with its subscription for new shares in Tokyo-based wire manufacturer Suzuki Metal Industry through a third-party allotment.
Accordingly, the percentage of Suzuki Metal shares held by Nippon Steel has risen from 35.90 percent to 66.59 percent, and Suzuki Metal has become a consolidated subsidiary of Nippon Steel.
Suzuki Metal, which processes value-added special wire rod products from Nippon Steel, earlier this year acquired former Sweden-based Haldex Garphyttan AB, now Suzuki Garphyttan AB, which has bases in Europe, North America and China, with the aim of expanding its valve spring wire business globally and achieving further profit growth. The processes related to the acquisition were completed on June 1, 2009. Thereafter, Nippon Steel subscribed for new shares issued by Suzuki Metal through a third-party allotment for the purpose of partially financing the acquisition and completing payment.