Japan firms mull merger of aluminium businesses-media

TOKYO, Jan 20 (Reuters) - Furukawa Electric Co Ltd (5801.T: Quote) and Showa Denko KK (4004.T: Quote) are in the final stage of talks on merging their aluminium operations, the business daily Nikkei Shimbun reported on Tuesday. The sharp economic downturn has battered Japan's aluminium industry as automakers, a major consumer of the metal, successively cut production due to poor demand. The Nikkei said that Furukawa, the top aluminium mill products maker, and Showa Denko, the sixth-largest, were aiming to reach an agreement in the summer. Officials at neither of the two firms were immediately available for comment. The daily said that if the two businesses were merged, it would create a firm with a domestic market share of over 20 percent, far surpassing that of No. 2 firm Sumitomo Light Metal Industries Ltd.