Japanese steel producer Nippon Steel Corporation has announced that it has entered into a definitive agreement to transfer its 50 percent equity interest in AM/NS Calvert, US-based joint venture between Nippon and Luxembourg-headquartered global steelmaker ArcelorMittal, to ArcelorMittal through its subsidiary NS Kote, which holds Nippon Steel’s entire equity interest in AM/NS Calvert.
The share transfer aims to proactively address any antitrust concerns that may arise from Nippon Steel’s ongoing ownership in Calvert following the United States Steel Corporation (US Steel) acquisition. In addition, the statement noted that the share transfer will not be realized if the US Steel acquisition is not consummated and the AM/NS Calvert joint venture will continue.
As a result of the share transfer, Nippon Steel expects to record approximately JPY 230 billion as a loss on business restructuring in its consolidated financial statements upon completion of the US Steel acquisition.