Orix Corp. said Friday it will buy a 90 percent stake in the Nippon Steel Corp. group's leasing unit and a 10 percent stake in its automobile-leasing firm, possibly in July.
The leading leasing company said it decided to buy into Nittetsu Lease Co. and Nittetsu Leasing Auto Co. to provide "a possibility for the Orix and Nippon Steel groups to form business tieups in a wide range of operations, including the environment, energy and city development."
Orix, which did not reveal how much it will pay for the equity stakes, said it also expects the deal to help expand its "operational base and raise corporate value" by providing various financial services to customers of the Nippon Steel group.
Nippon Steel Trading Co., which is to sell the stakes, said the deal is in line with the company's restructuring policy of improving competitiveness by focusing on steel products.
Nippon Steel Trading, which owns 98.5 percent of Nittetsu Lease, will sell 90 percent of the leasing unit's outstanding shares to Orix, and the remaining 8.5 percent stake to its parent firm, Nippon Steel, the two companies said.
The steelmaker currently holds a 1.5 percent stake in Nittetsu Lease.
Orix will also acquire the entire 10 percent stake held by Nippon Steel Trading in Nittetsu Leasing Auto, the companies said.