Kanadevia and Nippon Steel Engineering have ended their study of a merger. At board meetings on 29 September, each company resolved to cancel by mutual agreement the basic memorandum on integration talks they signed on 5 February 2026, and to stop all discussion of a combination.
The joint notice gives the reason in one sentence. The two companies had aimed to form a group with an industry-leading management base and advanced technology, and had held what they called sincere talks. They then concluded it would be difficult to reach agreement on the terms of an integration. The notice does not say which terms were at issue.
Nippon Steel, the parent of Nippon Steel Engineering, said in its own notice that the cancellation has no effect on its consolidated results. Kanadevia said the same about its consolidated results.
Kanadevia also filed an amendment to its extraordinary report of 5 February. That report had been filed on the basis that an event with a significant impact on the group's finances, earnings and cash flow was expected. The amendment withdraws it, citing the decision to end the talks.
Kanadevia's plan slips to spring 2027
Kanadevia says it had held back a new medium-term plan because of the integration study. It now plans to publish the next plan around spring 2027, after reconsidering its direction and management targets in light of energy policy, geopolitics and the end of the talks.
In the meantime it will continue the basic policies of its previous plan, Forward 25, with resources going to overseas business and priority areas and a push on group governance. Its order backlog stood at about ¥2.5tn at the end of June 2026, roughly four times this year's forecast sales, according to the company.
Kanadevia said the timing announcement requires no revision to its earnings forecast, and that it will disclose promptly anything that later needs disclosing. The 2027 plan is the next strategic update to watch.