Nippon Steel’s Strategic Move: Selling Stake in Calvert Plant

Nippon Steel plans to sell its 50% stake in a joint venture plant in Calvert, Alabama, to ArcelorMittal for $1 if its bid to acquire U.S. Steel succeeds. The sale would lead to a loss of approximately 230 billion yen. The transaction hinges on the acquisition's completion.

Nippon Steel has announced plans to offload its entire 50% stake in a joint venture steel plant located in Calvert, Alabama, shared with ArcelorMittal. This move is contingent on the success of Nippon Steel's buyout bid for United States Steel. If the acquisition proceeds, Nippon Steel will incur a consolidated loss of around 230 billion yen, or $1.55 billion, from selling its NS Kote holding company stake in the Calvert plant to ArcelorMittal for $1, according to company statements.

However, Nippon Steel clarified that if the acquisition of U.S. Steel is not finalized for any reason, the proposed sale will not occur, and there will be no financial impact on the company's performance. This statement highlights the conditional nature of the transaction, underscoring the importance of the U.S. Steel buyout deal to Nippon Steel's strategic plans.

The announcement reflects Nippon Steel's strategic maneuvers in the global steel industry landscape, as it positions itself amidst significant corporate negotiations and financial implications, with currency exchange set at $1 equating to 148.7400 yen.

(With inputs from agencies.)