ArcelorMittalthe largest company steel world, assures OKDIARIO that the commitment to purchase 50% of Calvert from the Japanese operation in Steel in the United States (US Steel) to move forward does not leave him too exposed to uncertainty since he considers that “he does not take risks”. The company would benefit if the Japanese Nippon Steel Company (NSC) manage to take over the American company, since they have just signed a agreement with the Asian company in which it agrees to sell you half of AM/NS for a single dollar Calverta joint venture between the two companies following the acquisition of Thyssen Krupp USA in February 2014, if the transaction goes through.
“We did not enter as players, but rather acquired Nippon Steel’s interest in Calvert as a matter of skill focus on US Steel. We didn’t go into the operation, but we took what they had and kept it all,” ArcelorMittal explains.
However, for this to happen, the steel company is “waiting”. However, he assures that we will in no way see that the operation of US Steel is blocked, as the president of United States Government, Joe Biden
“The American market does not affect Europe in any way. Perhaps indirectly, that is, shareholders reflect a certain change in the stock price. This may have a certain relationship in terms of valuation of the company, but the operation does not present any risk,” he assures.
“It is not that we are taking risks, nor that we are going into debt by acquiring Nippon Steel,” says ArcelorMittal.
In other words, given the little visibility that ArcelorMittal assumed in the controversial operation of steel sector The American does not consider that its blockade will have an impact on its price: “It is not that we are assuming any risk, nor that we are going into debt to acquire Nippon Steel’s share, but we will have to wait.”
ArcelorMittal already buys Calvert
The transaction, which was entered into at the request of NSC to resolve regulatory issues pursuant to its agreement to acquire US Steel, also contemplates the liquidity injection by NSC and the cancellation of partner loans for an amount estimated at approximately 900 million dollars (823 million euros).
In this sense, companies have warned that there is no guarantee for NSC to complete its acquisition of US Steel, adding that “if NSC does not complete its acquisition of US Steel, the agreement will not take effect and the AM/NS Calvert joint venture will continue.”
Nippon Steel explained that the agreement provides for the transfer of all shares of its subsidiary BORN. Kotewhich holds its stake in AM/NS Calvert, to ArcelorMittal at the same time as the pending acquisition of US Steel is completed.
“Nippon Steel has determined that the share transfer is the safest route to timely obtaining regulatory approval for the acquisition (of US Steel),” the Japanese company said.
“THE transfer of shares “Aims to proactively address any antitrust concerns that may arise from Nippon Steel’s continued ownership of Calvert post-acquisition,” it added.
Nippon Steel believes that following the transaction, which could be finalized by fourth quarter 2024 Under certain conditions and the approval of the American authorities, it will record an unfavorable impact of approximately 230 billion yen (1,413 million euros) on its accounts.
In this way, he clarified that if the purchase of US Steel was not definitively carried out for any reason, the share transfer operation would not be carried out and there would be no impact on its results, which ArcelorMittal considers to be completely risk-free.
