By Kosaku Narioka


Nippon Steel Trading Corp.'s shares were indicated sharply higher Thursday morning after the company's biggest shareholder, Nippon Steel Corp., said it planned to take control of the trading affiliate to better deal with supply-chain disruption.

Buy orders for Nippon Steel Trading shares overwhelmed sell orders even at the upper-end of the day's trading range of 5,660 yen, or 14% higher than Wednesday's close. No shares changed hands.

Shares of Nippon Steel Corp. were recently up 0.5% at Y2,215.5.

The Japanese steel maker, which holds a 35% stake in the trading affiliate, said Wednesday after the market closed that it planned to spend 136.59 billion yen ($1.03 billion) and boost its stake to 80%. Another major shareholder, Mitsui & Co., will maintain its 20% stake in Nippon Steel Trading, the steel maker said.

Nippon Steel Corp. said it wanted to deal with clients in Japan and abroad more directly, as market conditions change rapidly amid supply-chain disruption and a recent surge in prices of energy and natural resources. The affiliate engages in trading of steel, industrial machinery, textiles and foods.

Nippon Steel Corp. said it planned to start the tender offer in late February 2023 at Y9,300 apiece.

The board of Nippon Steel Trading endorsed the steel maker's plan and recommended shareholders to tender their shares.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

12-21-22 2147ET