Kanadevia, which operates environmental and infrastructure businesses, and Nippon Steel Engineering, a subsidiary of Nippon Steel, announced on 29 September that they were terminating discussions on business integration. They had been aiming to integrate in April next year, but concluded that they could not reach agreement on the various terms.
Kanadevia, which operates environmental and infrastructure businesses, and Nippon Steel Engineering announced on 29 September that they were terminating discussions on business integration. The two companies said they had concluded that it would be difficult to reach agreement on the various terms of the integration and indicated that they would abandon plans for an integration in April next year. Both companies have commented that there will be no impact on their consolidated financial statements, and have not indicated that the termination of the integration is expected to have an immediate impact on results.
When they initially announced in February that they would begin discussions, the combined revenue of the two companies was expected to exceed ¥1 trillion, making them the largest in Japan in the plant engineering sector, which handles large-scale industrial facilities. Following the termination, the two companies did not say whether they planned to make any further announcements regarding future developments.
This article conveys information based on Kyodo News reporting and focuses on the formal announcement concerning the end of the integration discussions and future developments.