Nippon Steel to sell Calvert JV to ArcelorMittal if U.S. Steel deal completed

TOKYO (Reuters) – Nippon Steel said on Friday it will sell its entire 50% stake in the joint venture steel plant in Calvert, Alabama, with ArcelorMittal (NYSE:) if the top Japanese steelmaker’s buyout bid for United States Steel (NYSE:) is successful.

Nippon Steel would book consolidated loss of about 230 billion yen ($1.55 billion) upon its sale of the NS Kote holding company that owns the joint venture stake in the Calvert plant to ArcelorMittal for $1, the company said.

If its acquisition of U.S. Steel is not completed for any reason, the sale of NS Kote to ArcelorMittal “will not be consummated and there will be no impact on earnings performance”, Nippon Steel said in a statement.

($1 = 148.7400 yen)