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.
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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.
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