Hanwa Co. finished buying control of Associated Steel Group, LLC (ASG) on August 31 (US Central Time), after clearing US antitrust review and satisfying every condition in the June 29 share transfer agreement. The Osaka-based steel trader took 50.1% of ASG through its North American arm, Hanwa American Corp. (HAMCO); the Development Bank of Japan took the remaining 49.9% through a newly formed special-purpose company in Japan. ASG is now a consolidated Hanwa subsidiary.
Hanwa's outlay for its share came to $226mn, a figure that includes loans HAMCO extended to repay existing borrowings held by ASG and its subsidiaries as part of the deal. That is not the same number as the $347mn benchmark Hanwa cited on June 30 for a full, 100%-equity purchase of ASG. The final total for Hanwa's 50.1% stake can still move, because the share transfer agreement allows closing-date adjustments for cash, interest-bearing debt, working capital and the pro-rata split between the two investors.
Separately, HAMCO raised its own capital by $235mn on August 27, lifting its paid-in capital to $275mn while keeping Hanwa's ownership of HAMCO at 100%. Hanwa says that capital increase carries no effect on its consolidated results for the year ending March 2027.
The bigger unknown is the ASG deal itself. Hanwa's May 12 full-year guidance for the year to March 2027 does not include any earnings effect from the acquisition, and the company says the impact is still being worked out. Hanwa says it will disclose promptly if the review produces anything that needs announcing.