Nippon Steel to Sell $211 Million in Assets to Manage Debt Amid U.S. Steel Deal

Nippon Steel Plans Significant Asset Sales Amid Debt Management Efforts

TOKYO – Nippon Steel is set to sell at least 30 billion yen (approximately $211 million) in assets during the current fiscal year as part of its strategy to manage debt, as reported by the company’s vice chairman. This move comes as the company awaits the outcome of its $14.9 billion bid for U.S. Steel.

Earlier in the year, Nippon Steel secured agreements with three major Japanese banks for loans totaling $16 billion to finance the acquisition of U.S. Steel. However, this deal is encountering political pushback in the United States, particularly in light of the impending presidential elections on November 5.

In light of the U.S. Steel acquisition, Nippon Steel plans to divest at least 30 billion yen worth of assets, which will include real estate and inventory, to enhance capital efficiency, as stated by Takahiro Mori, the vice chairman.

The company has yet to respond to requests for comments on this matter. Following the proposed acquisition, Nippon Steel’s debt-to-equity ratio is projected to rise to 0.9 from its current 0.5, with both companies aiming to finalize the deal by the end of December, contingent on necessary approvals.

Mori indicated that the debt-to-equity ratio could potentially improve to 0.7 by the end of March, provided certain actions are undertaken.