Japanese steel colossus emerges from Nippon, Sumitomo team-up.

Nippon Steel Corp. will merge with Sumitomo Metal Industries Ltd. in 2012, creating what will likely be the world's No. 2 steel company by production.
The Japanese companies, which have co-operated on semi-finished steel products since 2002, are targeting Oct. 1, 2012 as a merger date. Details of the merger will be finalized later, the companies said.
As of last year, Nippon produced 34,480 thousand tons of crude steel, while Sumitomo saw output of 13,320 thousand tons. Together, their production would rival only Luxembourg's ArcelorMittal, according to reports.
A merger would allow Nippon and Sumitomo to “accelerate their global strategies and realize a level of competitiveness which is globally outstanding in all aspects, including technology, quality, and cost, by combining their respective resources that each has built up, and generate synergies through consolidation of the superiority area in their respective businesses,” the companies wrote in a joint statement.
“By implementing these measures, the Companies, in the midst of drastic changes to the overall business environment, aim to become a truly world-leading comprehensive steel manufacturer.”
Nippon currently holds 9.4 per cent of Sumitomo's shares, while Sumitomo has a 4.2 per cent stake in Nippon.