Announcement on the Commencement of Consideration for Business Integration between Kanadevia Corporation and Nippon Steel Engineering Co., Ltd.

Overview of Business Integration

Kanadevia Corporation and Nippon Steel Engineering Co., Ltd. have commenced consideration for business integration and signed a basic memorandum on February 5, 2026, aiming to contribute to the growth of environmental-related businesses and a decarbonized society. Both companies share strong synergies in their business domains and strategies, aiming to build a business portfolio centered on three pillars: resource circulation, decarbonization, and resilience. The integration is planned primarily as a subsidiary merger, targeting an effective date in April 2027; however, this may be subject to change based on future due diligence and obtaining necessary approvals.

Future Outlook and Impact

The name of the integrated company, representative officers, board composition, and integration ratio will be determined through future discussions. The new integrated company intends to maintain its listing on the Tokyo Stock Exchange Prime Market and will secure governance as an independent publicly listed entity. Through this business integration, the companies aim to capture growth opportunities such as domestic and overseas environmental facility renewal demand and SDGs compliance, strengthening technological capabilities and financial foundation to achieve sustainable growth and enhance corporate value.