Nippon Steel & Sumitomo Metal To Acquire Ovako

- Mar 17, 2018-

Nippon Steel & Sumitomo Metal Corporation has entered into a share purchase agreement with funds advised by Triton to acquire Ovako AB which is headquartered in Sweden and manufactures and sells special steel aimed mainly at the European market. NSSMC plans to acquire Ovako within the first half of the fiscal year 2018, subject to the competition authorities’ examination.

Ovako is a maker of special steel with global top level technology regarding high- cleanliness steel for bearing steel and other such products, and supplies highest quality products. Special steel is used as a vital input for various industries, such as the automobile, industrial equipment, wind power generation, and robot industries, and it is expected that demand for it shall continue to grow steadily.

Through the acquisition of Ovako and by promoting cooperation with it, NSSMC wishes to further strengthen its technology, product quality, and product development capability for special steel. NSSMC seeks to strengthen and expand its global business, and, via securing a base of manufacture and sales in Europe, will expand the geographic reach of its special steel business.

Overview of Ovako (Consolidated Basis)
Name - Ovako AB
Location - Sweden (headquarter)
Representative - Joakim Olsson (Chairman), Marcus Hedblom(CEO)
Business - Manufacture and Sale of Special Steel and Secondarily Processed Products
Sales - 780,000 tons (Year 2017)
Amount of Sales – EUR 921 million
Total Assets – EUR 743 million
Employees - Approximately 3,000

Within the first half of the fiscal year 2018 (Target), finish the procedures for the transaction, subject to the examination by the competition authorities, and make it a subsidiary.


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