Nisshin Steel Co. and Nippon Metal Industry Co. have come out to deny reports in the Japanese media that the two companies are considering merging their operations at some point next year.

The Nikkei and Asahi newspapers are reporting that the companies have been in talks to merge their operations at some point in 2012, however neither newspaper quoted or gave any sort of source for the supposed information.

However as a result of the news both companies were temporarily suspended from trading in Tokyo after Nippon surged 13% and Nisshin surged 5.5%.

Despite this Isao Fujiwara, deputy manager at Nippon Metal Industry’s corporate planning department, claimed that no merger is on the table. Nisshin Steel spokesman Kazuki Kiura added that the companies are not in talks at all.