Nippon Steel, a prominent Japanese steelmaker, has announced plans to sell 30 billion yen ($211 million) in assets during the current fiscal year to manage its debt. This move is aligned with the company’s broader strategy to secure capital efficiency as it pursues a $14.9 billion bid to acquire U.S. Steel. The acquisition has been under scrutiny and faces political opposition in the U.S. particularly in the context of the upcoming presidential elections on November 5. The Japanese company’s vice-chairman, Takahiro Mori, revealed that the asset sale will include real estate and inventories, aiming to mitigate the impact of increasing debt on its balance sheet. The debt-to-equity ratio is projected to surge to 0.9 from 0.5 due to the U.S. Steel acquisition but could decrease to 0.7 by the end of March if mitigating steps are taken. This development follows the arrangement of $16 billion in loans from three Japanese megabanks to fund the takeover. Nippon Steel anticipates closing the deal with U.S. Steel by the end of December, pending necessary approvals.
Steel Manufacturing, Corporate Finance,Japan, United States
https://www.zawya.com/en/markets/equities/nippon-steel-to-sell-211mln-in-assets-to-manage-debt-amid-us-steel-deal-iejakzz5