Renta 4 | Nippon Steel finally acquires US Steel for $14.1 billion. This transaction means that ArcelorMittal (MTS) will acquire 50% of the joint venture it had with Nippon Steel in Calvert.
Arcelor will pay $1. Nippon Steel will receive compensation of $900 million in cash and debt cancellation.
The plant will be renamed ArcelorMittal Calvert.
AM expects this acquisition to increase the group’s net debt by $1.3 billion and to generate extraordinary income of $1.5 billion in Q2 25.
Assessment: This is a very favourable transaction for AM, as it acquires the remaining 50% of a factory considered to be the most advanced in the finishing segment in North America. It has a production capacity of 5.3 million tonnes of hot rolling and, at the end of 2024, completed the construction of a new electric arc furnace (EAF) with a capacity of 1.5 million tonnes (with an option to expand by another 1.5 million tonnes).
We estimate that this agreement will have an initial impact on the capital valuation of almost $1.4 billion or almost €1.60/share. P.O. €34.0. OVERWEIGHT.
