ArcelorMittal, a leading steel and mining company, has agreed to acquire Nippon Steel Corporation's 50% equity interest in the AM/NS Calvert JV.
The transaction involves a nominal consideration of $1, with Nippon Steel injecting cash and forgiving partner loans totalling around $900m (Y134.47m).
This move comes as Nippon Steel seeks to alleviate regulatory concerns related to its proposed acquisition of US Steel.
The completion of the deal is contingent on Nippon Steel acquiring US Steel, which is still subject to various regulatory approvals.
There is no certainty that Nippon Steel's acquisition of US Steel will be finalised.
If Nippon Steel does not proceed with its acquisition, the agreement with ArcelorMittal will not be activated, and the AM/NS Calvert JV will remain as is.
Calvert, renowned as North America's most capable finishing facility, is instrumental in delivering quality steel solutions.
It has a hot strip mill capable of rolling advanced high-strength steels, line pipe and stainless products.
The facility also includes a continuous pickling line and a pickle line-tandem cold mill, which are optimised for automotive production.
Moreover, Calvert's coating lines are equipped to produce advanced automotive grades including Generation 3 advanced high-strength steels and press-hardened steel.
The construction of a new 1.5 million tonnes per annum electric arc furnace (EAF), which will be integrated with ArcelorMittal's HBI facility in Texas, is under way.
This development will enable Calvert to provide automotive customers with steel that has a lower CO? footprint, melted and poured in the US.
With additional investments being considered, such as a second EAF and a Non-Grain Oriented Electrical Steels line, Calvert is set to continue supporting domestic manufacturing industries.
In March this year, ArcelorMittal reached a deal to purchase 28.4% equity stake in Vallourec.
