ArcelorMittal has announced the signing of a definitive Equity Purchase Agreement with Nippon Steel Corporation (NSC), under which ArcelorMittal will acquire NSC’s 50% equity stake in the AM/NS Calvert Joint Venture.
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This transaction was requested by NSC to address regulatory concerns related to its planned acquisition of US Steel. However, the transaction will only proceed if NSC successfully completes its acquisition of US Steel, which remains subject to additional regulatory approvals.
According to the agreement, ArcelorMittal will pay a symbolic $1 for NSC’s stake in the Calvert Joint Venture.
In addition, NSC will inject an estimated $0.9 billion in cash and will forgive partner loans as part of the deal. Should NSC’s acquisition of US Steel not be finalized, the terms of the agreement will be void, and the joint venture between ArcelorMittal and NSC will remain intact.
AM/NS Calvert, a joint venture formed by ArcelorMittal and NSC in 2014 following the acquisition of Thyssen Krupp USA, is recognized as one of North America’s most advanced finishing facilities.
Located in Alabama, the facility specializes in producing high-quality steel products for the region’s most demanding customers, particularly in the automotive and industrial sectors.
Its cutting-edge hot strip mill is designed for advanced high-strength steels (AHSS), stainless products, and line pipe, with a focus on automotive-grade steel production through continuous pickling and tandem cold mill processes.
Calvert is also in the process of constructing a 1.5 million tons per annum (mtpa) electric arc furnace (EAF), which will be integrated with ArcelorMittal’s Hot Briquetted Iron (HBI) facility in Texas.
This development will allow Calvert to supply lower CO2 embodied steel, supporting the automotive industry’s demand for sustainable materials.
Further investments are also under consideration, including a second EAF and a Non-Grain Oriented Electrical Steels line, reinforcing Calvert’s strategic role in supplying the U.S. manufacturing sector. ■