Japan-based steelmaker Nippon Steel Corporation will receive a total of $16 billion in loans from three Japanese banks Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Mizuho Financial Group for its acquisition of US steelmaker United States Steel Corporation (US Steel), according to media reports. The loans will include $6.5 billion from Sumitomo Mitsui, $5.5 billion from Mitsubishi UFJ and $4.0 billion from Mizuho.
Nippon Steel is expected to repay the loans within one year. In December last year, Nippon Steel decided to acquire US Steel through its subsidiary Nippon Steel North America for approximately $14 billion to expand its current production in the US, as SteelOrbis previously reported.