International Steel Mills
CRU: Banks line up $16B loan to Nippon Steel for U.S. Steel deal
Written by CRU Americas
February 2, 2024
Three of Japan’s major banks have agreed to lend Nippon Steel a combined $16 billion for its $14.1-billion planned acquisition of United States Steel, provided the acquisition is completed, the Japanese steelmaker said.
The banks are Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group, and Mizuho Financial Group, Reuters news agency reported.
The directors of Pittsburgh-based US Steel have unanimously approved the takeover. But the White House is less sure.
President Joe Biden’s most senior economic adviser, Lael Brainard, has said: “[He] believes the purchase of this iconic American-owned company by a foreign entity, even one from a close ally, appears to deserve serious scrutiny in terms of its potential impact on national security and supply chain reliability.”
This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.
CRU Americas
Read more from CRU AmericasLatest in International Steel Mills
CRU: Bids made for Ilva assets
The Italian government has received 10 offers for the former Ilva integrated steel works at Taranto, but only two bidders are interested in purchasing all of the company’s assets.
Global steel production declined through August
August marked the second-lowest monthly production rate this year, down 13% from the two-year high of 166.6 million mt in March.
Algoma Steel assesses viability of US sales in wake of 50% S232 tariffs
Canadian flat-rolled steelmaker Algoma Steel is reconsidering its presence in the US market after the doubling of US Section 232 tariffs on imported steel to 50%, a company spokeswoman said.
Nippon plans to double steel output at USS operations: Report
Now that it has acquired U.S. Steel, Nippon Steel is planning a significant expansion of its US operations, including the construction of a new mill and more than doubling its steel output.
Global steel mill output steady through May
Global raw steel production rose 2% from April to May, slightly above average production levels seen in recent months, according to data recently released by the World Steel Association (worldsteel).