Nippon Steel Agrees to Sell AM/NS Calvert JV Upon Completion of U.S. Steel Acquisition Deal

According to the deal, Nippon Steel would record a combined loss of almost $1.55 billion when it sold ArcelorMittal a 50% interest for $1.

SEATTLE (Scrap Monster): A definitive Equity Purchase Agreement between ArcelorMittal and Japanese Nippon Steel Corporation (NSC) has been announced. Under the terms of the agreement, ArcelorMittal will acquire NSC's 50% ownership investment in the ArcelorMittal/Nippon Steel (AM/NS) Calvert Joint Venture located in Alabama, USA.

RELATED NEWS:

U.S. Steel Unveiled New Economic Impact Analysis on Nippon Steel Investment

Nippon Steel Plans to Offload $211M of Assets to Manage Debt

The proposed NSC acquisition of Pittsburgh-based United States Steel Corporation (U.S. Steel) must be completed successfully for the transaction to proceed. It was signed at NSC's request to resolve regulatory issues arising from its acquisition of U.S. Steel. It must be noted that acquisition deal has been facing political opposition, with both presidential candidates vowing to keep U.S. Steel as an American-owned company.

According to the deal, Nippon Steel would record a combined loss of almost $1.55 billion when it sold ArcelorMittal a 50% interest for $1. Nevertheless, there's no assurance that NSC will finish acquiring U.S. Steel. The AM/NS Calvert Joint Venture will continue if NSC is unable to close the acquisition deal. The agreement will not take effect in that case.

About 4.7 million metric tons of steel sheets are produced annually at the Calvert steelmaking factory, mostly for the automotive sector.

• Panama President Sees No Environmental Threat from Copper at Closed First Quantum Mine
• Consumers Sue Exxon, Dow, Others over Plastic Recycling Claims
• VLS Environmental Solutions Announces Acquisition of Clearfield MMG in Virginia
• December 19, 2024: Scrap Gold and Platinum Prices Dipped, Silver Up on the Index