ArcelorMittal to Acquire Nippon Steel’s Stake in AM/NS Calvert Following US Steel Deal

ArcelorMittal to Acquire Nippon Steel’s Stake in AM/NS Calvert Following US Steel Deal

(IN BRIEF) ArcelorMittal has entered into an agreement to purchase Nippon Steel Corporation’s 50% stake in the AM/NS Calvert Joint Venture, contingent upon NSC’s successful acquisition of US Steel. As part of the deal, NSC will inject approximately $0.9 billion in cash and forgive partner loans. If the acquisition does not proceed, the joint venture will remain unchanged. Calvert, a state-of-the-art steel finishing facility, continues to play a key role in supplying high-quality steel to North American manufacturers, with further investments planned to meet growing demand for sustainable steel products.

(PRESS RELEASE) LUXEMBOURG, 11-Oct-2024 — /EuropaWire/ — ArcelorMittal has announced the signing of a definitive Equity Purchase Agreement with Nippon Steel Corporation (NSC), under which ArcelorMittal will acquire NSC’s 50% equity stake in the AM/NS Calvert Joint Venture. This transaction was requested by NSC to address regulatory concerns related to its planned acquisition of US Steel. However, the transaction will only proceed if NSC successfully completes its acquisition of US Steel, which remains subject to additional regulatory approvals.

According to the agreement, ArcelorMittal will pay a symbolic $1 for NSC’s stake in the Calvert Joint Venture. In addition, NSC will inject an estimated $0.9 billion in cash and will forgive partner loans as part of the deal. Should NSC’s acquisition of US Steel not be finalized, the terms of the agreement will be void, and the joint venture between ArcelorMittal and NSC will remain intact.

AM/NS Calvert, a joint venture formed by ArcelorMittal and NSC in 2014 following the acquisition of Thyssen Krupp USA, is recognized as one of North America’s most advanced finishing facilities. Located in Alabama, the facility specializes in producing high-quality steel products for the region’s most demanding customers, particularly in the automotive and industrial sectors. Its cutting-edge hot strip mill is designed for advanced high-strength steels (AHSS), stainless products, and line pipe, with a focus on automotive-grade steel production through continuous pickling and tandem cold mill processes.

Calvert is also in the process of constructing a 1.5 million tons per annum (mtpa) electric arc furnace (EAF), which will be integrated with ArcelorMittal’s Hot Briquetted Iron (HBI) facility in Texas. This development will allow Calvert to supply lower CO2 embodied steel, supporting the automotive industry’s demand for sustainable materials. Further investments are also under consideration, including a second EAF and a Non-Grain Oriented Electrical Steels line, reinforcing Calvert’s strategic role in supplying the U.S. manufacturing sector.

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and, 42.0 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

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SOURCE: ArcelorMittal