Japanese steel giant, Nippon Steel, prepares to acquire US Steel's manufacturing facilities up for sale.
Giant Japanese steel firm Nippon Steel intends to clear the path for its anticipated purchase of competitor US Steel by offloading its 50% share in a steel mill joint venture situated in Calvert, Alabama, to its domestic partner ArcelorMittal. This move is a response to potential antitrust issues, and the transaction value for ArcelorMittal has been set at a single dollar. As a result, Nippon Steel will log a financial loss of approximately $1.55 billion on its books. The company aims to finalize the acquisition of US Steel by year's end.
The proposal, announced in December 2023, has fueled political opposition and emerged as a discussion point during the U.S. presidential election campaign. Both U.S. Vice President Kamala Harris and her adversary, ex-President Donald Trump, have voiced their concerns about the agreement.
The announcement of Nippon Steel's plan to sell its share in the Calvert steel mill to ArcelorMittal was detailed in the company's annual report for 2023. Despite the symbolic value of $1 for the transaction with ArcelorMittal, the financial implications for Nippon Steel are significant, as highlighted in the annual report.
