TOKYO — General trading house Mitsui & Co. will raise its stake in a specialty trading company affiliated with Nippon Steel & Sumitomo Metal and reduce business overlap in steel sales, aiming to adapt to today’s challenging industry landscape.
Mitsui will spend some 18 billion yen ($160 million) to lift its stake from 11% to 20% in specialty trader Nippon Steel & Sumikin Bussan, which will become an equity-method affiliate as a result, under a deal announced Friday. Mitsui will also sell a portion of its steel sales business to the specialty steel trader for 60 billion yen.
Mitsui will acquire 1.7 million shares from other stockholders in the specialty trader this fiscal year and also buy 1.35 million shares to be issued next April.
Some Mitsui and group company staffers dealing with steel sales will be transferred to the specialty trader.
In 2002, Mitsui bought into Nippon Steel & Sumikin Busan, which was financially struggling at the time.