ArcelorMittal on a shopping spree: Acquisition of Nippon Steel's Calvert share in the starting blocks

The global steel and mining giant ArcelorMittal plans to acquire Nippon Steel's 50% stake in the AM/NS Calvert joint venture. The purchase price is a symbolic $1. Simultaneously, Nippon Steel is providing a cash infusion and waiving partner loans amounting to approximately $900 million (equivalent to about 134.47 million yen). This transaction occurs as Nippon Steel seeks to address regulatory concerns related to the planned acquisition of US Steel. However, the transaction is contingent upon Nippon Steel successfully completing the acquisition of US Steel—a step that still requires approval from various authorities. If the acquisition does not materialize, the agreement with ArcelorMittal remains inactive, and the AM/NS Calvert joint venture remains unchanged. Calvert, known as a leading processing facility in North America, plays a central role in providing high-quality steel products. The facility features a hot strip mill that manufactures advanced high-strength steels as well as tubular and stainless steel products. Modern coating lines enable the production of advanced automotive grades, including Generation 3 high-strength steels. A new electric arc furnace (EAF) with a capacity of 1.5 million tons per year is currently under construction, which will be integrated with ArcelorMittal's HBI plant in Texas. This development aims to provide automotive customers with steel having a reduced CO₂ footprint, melted and cast in the USA. Further investments, such as a second EAF and a non-grain oriented electrical steels line, are under consideration to further strengthen domestic production. Already in March this year, ArcelorMittal had acquired a 28.4% stake in Vallourec.