ArcelorMittal announced that it has entered into a definitive share purchase agreement with Nippon Steel Corporation ("NSC"), under which ArcelorMittal will acquire NSC's 50% interest in the AM/NS Calvert joint venture.
The transaction was entered into at the request of NSC to resolve regulatory issues under the agreed acquisition of US Steel. The transaction is contingent upon NSC completing its pending acquisition of US Steel, which is subject to various other regulatory requirements.
Under the terms of the agreement, ArcelorMittal will pay a consideration of US$1 per transaction; in addition, NSC will contribute cash and forgive debt on partner loans in an amount estimated at approximately $0.9 billion.
There are no representations or warranties that NSC will complete its acquisition of US Steel. If NSC does not complete its acquisition of US Steel, the agreement will not enter into force and the AM/NS Calvert joint venture will continue to exist.
Background of AM/NS Calvert
Joint venture between ArcelorMittal and NSC acquired Thyssen Krupp USA in February 2014.
Calvert is the most powerful finishing facility in North America, delivering the highest quality steel to the region's most demanding customers:
- State-of-the-art mill hot rolling mill (HSM), designed for rolling advanced high strength steels (AHSS), linear tubes and stainless steel products.
- Continuous pickling line (CPS) and associated pickling line-tandem cold rolling mill (PLTCM), optimized for automated production (including open)
- Galvanized and aluminized coating lines that can supply leading automotive grades including Gen3 AHSS and Hardened Steel (PHS)
- New Electric Arc Furnace ( The 1.5 million tonne per annum EAF, currently under construction and integrated with ArcelorMittal's HBI plant in Texas, will enable Calvert to supply automotive customers with low CO2 steel smelted and cast in the United States America.
With additional investments being considered - a second electric arc furnace and a non-structured electrical steel production line - Calvert will continue to fulfill its important role in supplying domestic manufacturing industries.
