ArcelorMittal has entered into a definitive equity purchase agreement with Nippon Steel Corporation (NSC) to acquire NSC’s 50pct stake in the AM/NS Calvert joint venture. This move responds to regulatory concerns linked to NSC’s planned acquisition of U.S. Steel, and the transaction hinges on NSC completing that acquisition, which faces various regulatory requirements.
Under the agreement, ArcelorMittal will pay USD 1, while NSC will inject approximately USD 0.9 bln in cash and forgive partner loans. If NSC fails to complete its acquisition of U.S. Steel, the agreement will not take effect, and the AM/NS Calvert joint venture will continue as is.
AM/NS Calvert, a joint venture between ArcelorMittal and NSC formed in February 2014, operates a hot strip mill designed for advanced high-strength steels, line pipe, and stainless products. It features a continuous pickling line, a coupled pickle line-tandem cold mill optimized for automotive production, and coating lines for galvanized and aluminized products.
Additionally, a new 1.5 mln tons per annum electric arc furnace (EAF) is currently under construction, integrated with ArcelorMittal’s HBI facility in Texas. This will enable the Calvert plant to supply automotive customers with lower CO2 embodied steel, melted and poured in the USA.
