MEPS’s global steel mergers and acquisitions round-up

Aperam’s purchase of Universal Stainless, a change in ownership at Calvert and Acerinox’s sale of Bahru Stainless feature in MEPS International’s October global steel mergers and acquisitions round-up.

North America

Aperam

Luxembourg-headquartered Aperam has entered into a definitive agreement to acquire United States-based Universal Stainless.

The USD45 per share all-cash offer represents a premium of 3.6% on Universal’s closing stock price on October 16, the day prior to the announcement. This values the company at USD539 million.

The acquisition, which is expected to be concluded in the first half of 2025, remains subject to shareholder and regulatory approval. It forms part of Aperam’s plan to increase its presence in the North American markets. The steelmaker expects to achieve annual synergies and cost savings totalling USD30m.

AM/NS Calvert

Nippon Steel has agreed to sell its 50% stake in the AM/NS Calvert facility to its partner in the joint venture, ArcelorMittal.?

The sale of Nippon’s share in the Alabama site – for a nominal fee of USD1 – is dependent on its acquisition of US Steel being authorised by US authorities and will only proceed if that purchase is completed. Nippon Steel will also provide ArcelorMittal with almost USD0.9 billion in cash support and loan forgiveness once the agreement is finalised.?

The Japanese steelmaker said in a statement that it believes the sale is “the most assured path to address any antitrust concerns”. The AM/NS facility currently produces a wide range of hot rolled, cold rolled and galvanised coils and sheets.

Asia

Acerinox

Acerinox has entered into an agreement to sell its Malaysian subsidiary, Bahru Stainless, to Worldwide Stainless for USD95 million.

Spain-based Acerinox expects its sale to the Malaysian company to be finalised towards the end of November.

Acerinox ceased production at the Bahru Stainless facility in May 2024, citing challenging market conditions caused by competition from Chinese manufacturers.

The site, located in Pasir Gudang, is Malaysia’s only producer of cold rolled stainless steel. In 2023, it produced 77,000 tonnes of cold rolled stainless flat products.

Nippon Steel

Nippon Steel Stainless Steel Corporation, currently a wholly owned subsidiary of Nippon Steel, is set to merge with its parent company.

The move will simplify the company’s corporate structures and integrate the businesses for strategic, financial, and operational benefits, Nippon Steel said.

Due to their current relationship neither company is required to attain shareholder approval for the deal to proceed. No shares or money will be transferred when the merger is completed on April 1, 2025.

Nippon/Posco

Nippon Steel plans to divest its remaining holdings in South Korean steelmaker Posco.

The 2.9 million shares which it currently holds represents a 3.3% stake in Posco. The company stated that the timing of the sale will be determined by market trends.?

Nippon previously sold 1.5 million Posco shares in summer 2016. It said that, despite its plan to sell its remaining stocks, the two companies will continue the “strategic alliance relationship” they formed in 2000.