Nisshin Steel and Nippon Metal Industry on Tuesday announced plans to merge in a deal that would create the second-largest maker of stainless steel in Japan.

The companies, which have a combined market capitalization of $1.6 billion, expect to complete the merger by October 2012. Nisshin, which already owns a 5 percent stake in Nippon Metal, has a stand-alone value of $1.4 billion.

The firms said they planned to create a holding company for the newly combined business, but did not provide specifics on the merger.

via Nisshin Steel and Nippon Metal to Merge – NYTimes.com.