The Transaction has been entered in to at the request of NSC to address regulatory concerns pursuant to its agreed acquisition of US Steel. The Transaction is subject to NSC completing its pending acquisition of US Steel, which is subject to various other regulatory requirements.
Under the terms of the agreement, ArcelorMittal will pay $1 consideration for the Transaction; further, NSC will inject cash and forgive partner loans in an amount estimated to be approximately $0.9 billion.
There are no assurances or guarantees that NSC will complete its acquisition of US Steel. Should NSC not complete its acquisition of US Steel, then the Agreement will not come into effect and the AM/NS Calvert Joint Venture will continue.
Background on AM/NS Calvert
A Joint Venture between ArcelorMittal and NSC acquired Thyssen Krupp USA in February 2014.
Calvert is the most capable finishing facility in North America, supplying the highest quality steel solutions to the most demanding customers in the region:
- State-of-the-art hot strip mill (HSM) designed to roll advanced high strength steels (AHSS), Line Pipe & Stainless products
- Continuous Pickling Line (CPS) and coupled Pickle Line-Tandem Cold Mill (PLTCM) optimized for auto production (including exposed)
- Coating Lines, galvanized and aluminized, which can supply advanced automotive grades including Gen3 AHSS and Press Hardened Steel (PHS)
The new 1.5mtpa electric arc furnace (EAF) currently under construction, integrated with ArcelorMittal’s HBI facility in Texas, will enable Calvert to supply automotive customers with lower CO2 embodied steel, melted and poured in the United States of America.
With more investments under consideration – a second EAF and a Non-Grain Oriented Electrical Steels line – Calvert will continue to fulfil its critical role in supplying domestic manufacturing industries.