ArcelorMittal to Acquire Nippon Steel's Interest in Calvert JV

Core Viewpoint - ArcelorMittal S.A. has signed a definitive equity purchase agreement with Nippon Steel Corporation to acquire NSC's 50% equity stake in the AM/NS Calvert joint venture, contingent on NSC's acquisition of U.S. Steel [1][2] Company Summary - The transaction involves ArcelorMittal paying $1 for the equity stake, while NSC will inject cash and forgive partner loans totaling approximately $0.9 billion [1] - The AM/NS Calvert joint venture is recognized as North America's most capable finishing facility, providing high-quality steel solutions [2] - ArcelorMittal's shares have increased by 5.1% over the past year, contrasting with a 2.5% decline in its industry [2] Industry Summary - Current market conditions are deemed unsustainable due to China's excess steel production, leading to low domestic steel spreads and aggressive exports [2] - Both Europe and the U.S. are experiencing steel prices below marginal costs, but ArcelorMittal anticipates a year-over-year increase in apparent demand in the second half of 2024, driven by potential restocking activity as real demand recovers [2] - The company projects a 2.5-3% growth in global steel consumption, excluding China, for 2024, a revision from the previous estimate of 3-4% growth [2]