Nippon declines comment on tie-up with Arcelor
Nippon Steel Corp,
Japan's largest steelmaker, declined to comment on news regarding a clause in its technology tie-up with Arcelor. The clause in the tie-up agreement is expected to help Arcelor compete with the hostile takeover bid by Mittal Steel.
As previously reported by SteelOrbis, Mittal Steel offered Euro 18.6 billion to takeover
Luxembourg-based steelmaker Arcelor.
Under a change of control clause in the tie-up agreement, Nippon Steel can stop Arcelor from using technologies it has provided to the firm if it is taken over, sources report.
"We cannot comment on anything, including whether there is such a clause," a Nippon Steel spokesman said.
It is not clear yet whether Nippon Steel will use the clause, however, if Nippon uses the clause it will create supply problems for Japanese automakers' European plants and Arcelor will be a less attractive prospect for takeover.
The Nippon Steel-Arcelor tie-up covers technologies for high-grade steel sheets used in automobiles.