Nisshin Steel Co., who are Japan’s third largest stainless steel maker, saw their stock surge on the Tokyo stock exchange after rumours began circulating that they are to merge with Nippon Metal Industry.

Shares in the company rose by 5.2% after Japan Metal Bulletin reported that the merger may happen. They rose to a high of 162 yen, with Nippon Metal Industry also experiencing a 13% rise to 105 yen.

However there has not been an official word on the merger, however Nisshin have claimed that there will be an announcement in relation to the possible merger soon. However Nippon’s deputy manager Isao Fujiwara claims there have been no merger talks between the two companies.

Nisshin Steel is the largest shareholder of Nippon Metal, holding a 5.12 percent stake as of March 31, according to data compiled by Bloomberg.