ArcelorMittal to Purchase Nippon Steel’s Calvert Stake if US Steel Transaction Proceeds Successfully

ArcelorMittal, a major player in the steel and mining industry, has finalized an agreement to acquire Nippon Steel Corporation's 50% equity interest in the AM/NS Calvert joint venture (JV). The deal involves a nominal consideration of just $1, while Nippon Steel will contribute cash and forgive partner loans amounting to approximately $900 million (¥134.47 billion). This strategic move is part of Nippon Steel's efforts to address regulatory concerns surrounding its planned acquisition of US Steel.

The successful completion of this transaction is contingent upon Nippon Steel's acquisition of US Steel, which still requires various regulatory approvals. There remains uncertainty regarding the finalization of Nippon Steel’s acquisition; if it does not proceed, the agreement with ArcelorMittal will be rendered inactive, and the AM/NS Calvert JV will continue to operate as it currently does.

Calvert is recognized as North America’s premier finishing facility, playing a vital role in providing high-quality steel solutions. The plant features a hot strip mill capable of producing advanced high-strength steels, line pipe, and stainless products. Additionally, Calvert boasts a continuous pickling line and a pickle line-tandem cold mill specifically optimized for automotive production. Its coating lines are engineered to produce advanced automotive grades, including Generation 3 advanced high-strength steels and press-hardened steel.

Currently, a new electric arc furnace (EAF) with a capacity of 1.5 million tonnes per annum is under construction at Calvert, which will be integrated with ArcelorMittal’s HBI facility in Texas. This upgrade will allow Calvert to offer automotive customers steel that has a significantly reduced CO2 footprint, as it will be melted and poured in the United States.

In addition to the EAF project, further investments are being considered, including a second EAF and a Non-Grain Oriented Electrical Steels line. These developments position Calvert to continue supporting domestic manufacturing industries and enhance its operational capabilities.

Earlier this year, in March, ArcelorMittal also reached an agreement to acquire a 28.4% equity stake in Vallourec, showcasing its ongoing commitment to strategic partnerships and investments within the steel sector. As the landscape of the steel industry evolves, ArcelorMittal's acquisition of Nippon Steel’s interest in Calvert reflects a broader trend of consolidation and collaboration aimed at addressing regulatory challenges and meeting the growing demands of automotive customers for sustainable steel solutions.

ArcelorMittal is a prominent global integrated steel and mining company operating in 60 countries, with primary steelmaking facilities located in 15 of those. It stands as the largest steel producer in Europe and ranks among the top producers in the Americas, while also expanding its footprint in Asia through the joint venture AM/NS India. The company serves a wide variety of customers across industries such as automotive, engineering, construction, and machinery. In 2023, ArcelorMittal reported revenues of $68.3 billion, producing 58.1 million metric tonnes of crude steel and 42.0 million tonnes of iron ore.