Nippon Denko Co., Ltd. (TSE:5563) agreed to acquire Chuo Denki Kogyo Co. Ltd. (TSE:5566) from Nippon Steel & Sumitomo Metal Corporation (TSE:5401) and others for ¥10.7 billion in stock on December 27, 2013. Under the terms of the agreement, one share of Chuo Denki Kogyo's stock will be exchanged with 1.15 shares of Nippon Denko's stock. 36.31 million shares of Nippon Denko's stock will be exchanged. Post transaction, Nippon Denko's name will be changed to Shin Nippon Denko. Post transaction, Takao Nishino will be reappointed as Representative Director, Ryuichiro Koseki, Harumi Tsujimura, Akihiko Ueno, Yasuo Suzuki and Takayuki Koshimura will be reappointed as Directors. In addition, on June 2014, Director Consultant Ryo Somera will resign and become a consultant. On July 1, 2014 new Nippon Denko Co., Ltd. will have Takao Nishino, Takayuki Koshimura, Nobuo Tanaka, Toshiharu Sakae as the new Directors. Kazuya Komori will be the auditor. In addition, Takao Nishino will be appointed the Vice President of Nippon Denko Co., Ltd.

The share exchange is subject to approval by the Japan Fair Trade Commission and other relevant authorities and by the general shareholders meetings of both Nippon Denko and Chuo Denki. The deal is expected to close on July 1, 2014. Chuo Denki Kogyo Co Ltd's stock will delist from Tokyo Stock Exchange second section on June 26, 2014. As on March 28, 2014, the shareholders of Nippon Denko and Chuo Denki approved the transaction. Nomura Securities Co., Ltd acted as financial advisor and Mori Hamada & Matsumoto acted as legal advisor to Nippon Denko Co., Ltd. Daiwa Securities Co., Ltd. acted as financial advisor and Nagashi Ohno & Tsunematsu acted as legal advisor to Chuo Denki Kogyo Co. Ltd.

Nippon Denko Co., Ltd. (TSE:5563) completed the acquisition of Chuo Denki Kogyo Co. Ltd. (TSE:5566) from Nippon Steel & Sumitomo Metal Corporation (TSE:5401) and others on July 1, 2014.