Nippon Will Offload Calvert if USS Bid Successful
By
Metal Center News Staff on
Oct 21, 2024
Nippon Steel will sell its share of the AM/NS Calvert joint venture with ArcelorMittal in the event its proposed acquisition of U.S. Steel is successful. The transaction has been entered into at the request of NSC to address regulatory concerns pursuant to its agreed acquisition of U.S. Steel.
Under the terms of the agreement, ArcelorMittal will pay $1 consideration for the transaction; further, NSC will inject cash and forgive partner loans in an amount estimated to be approximately $900 million.
There are no assurances or guarantees that NSC will complete its acquisition of U.S. Steel. Should NSC not complete its acquisition of U.S. Steel, then the agreement will not come into effect and the AM/NS Calvert JV will remain in place.
A joint venture between ArcelorMittal and NSC began upon the acquisition of thyssenkrupp USA in February 2014.
Calvert operates a hot-strip mill, designed to roll advanced high strength steels, line lipe and stainless products; a continuous pickling line and coupled pickle-line tandem cold mill for auto production; and coating lines.
The new 1.5-million-ton electric arc furnace under construction, integrated with ArcelorMittal’s HBI facility in Texas, will enable Calvert to supply automotive customers with lower CO2 embodied steel, melted and poured in the U.S.