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Kyoei Steel, Tokyo Tekko cancel merger

October 19, 2009 - 05:11 GMT Location: Tokyo

KEYWORDS: Japan , Kyoei Steel , Tokyo Tekko , merger

Japan's Kyoei Steel and Tokyo Tekko are cancelling their merger plan due to the uncertainty of fair trade commission (FTC) approval, they said.

Kyoei Steel, Japan's second-largest electric arc furnace (EAF) operator, and Tokyo Tekko, the country's largest producer of steel screws and rivets, had planned to merge under a holding company. The plan had undergone a first-stage examination at Japan's FTC, which decided earlier this month to begin a second stage of examination to see if the mills' combined domestic shares of some steel bar and other products could violate anti-monopoly law. This extended review has made it difficult to complete the merger by April, or to realise the synergies from the deal within the original time frame, said the two steelmakers. "To be honest, the FTC hasn't given any indication that they would object to or block our merger....

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