ArcelorMittal S.A., one of the largest steel companies in the world, has entered into a final agreement with the Japanese steel company Nippon Steel Corp. (NSC) on the acquisition of 50% of the shares owned by NSC in the AM/NS Calvert joint venture. This is reported in the press release of ArcelorMittal.
The deal was concluded at the request of NSC in order to resolve problems related to regulatory authorities as part of the acquisition of the American steel company US Steel.
The agreement provides for the mandatory completion of the acquisition of US Steel by NSC, which is subject to regulatory approval.
According to the terms of the agreement, ArcelorMittal will pay $1 for the stake; at the same time, NSC will provide cash and write off partner loans in the amount of $0.9 billion.
The AM/NS Calvert joint venture acquired Thyssen Krupp USA in February 2014.
Calvert is the most productive steel finishing company in North America, supplying the highest quality products in the region. The company has a state-of-the-art hot rolling mill for high-strength steels, a production line for pipes and stainless steel products, a continuous etching line for automobile production and a coating line under the AHSS Gen3 brand, as well as an electric arc furnace integrated with the ArcelorMittal plant in Texas.
Calvert will continue to play an important role in supplying the manufacturing industry with the construction of an electrical steel production line.
In 2023, Nippon Steel entered into an agreement to acquire the American steel company US Steel. The total amount of the transaction, including US Steel's debt obligations, is $14.9 billion.
As part of the proposed deal, Nippon Steel expects to surpass ArcelorMittal in terms of production and become the world's second largest steel company after China's Baowu Steel Group (132 million tons). In addition, the acquisition of the assets of US Steel, which will retain its name and headquarters in the United States, will enable Nippon Steel to overcome the decline in demand in the local market and expand its international operations in the US and Asian markets.
ArcelorMittal is the second largest metallurgical company in the world by production volume. The company was formed in 2006 as part of the merger of Luxembourg's Arcelor and India's Mittal Steel. The company operates manufacturing facilities in 18 countries and sells products to 160 countries. Equity is about $55.59 billion, net profit is $9.302 billion. The headquarters is located in Luxembourg.
NSC is a Japanese steel company and one of the largest steelmaking companies in the world. In 2012, NSC merged with Sumitomo Metal to form Nippon Steel & Sumitomo Metal Corporation. The headquarters is located in Tokyo (Japan).
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