Thursday, 3 April 2025
Home Topics Business Nippon Steel to sell $211 million in assets to manage debt amid US Steel deal
BusinessFinanceIndustryManufacturingNews

Nippon Steel to sell $211 million in assets to manage debt amid US Steel deal

91
FILE PHOTO: Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024.  REUTERS/Issei Kato/File photo
FILE PHOTO: Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato/File photo

TOKYO (Reuters) – Nippon Steel plans to sell at least 30 billion yen ($211 million) in assets in this fiscal year to manage its debt, the Nikkei quoted its vice chairman as saying on Friday, as it waits to know the fate of its $14.9 billion bid for U.S. Steel.

Earlier this year, Nippon Steel agreed with three Japanese megabanks for $16 billion in loans to fund the acquisition of U.S. Steel. However, the deal is facing political opposition in the United States amid the Nov. 5 presidential elections.

Nippon Steel plans to sell at least 30 billion yen in assets including real estate and inventories to improve capital efficiency amid the U.S. Steel takeover, the Japanese steelmaker’s vice chairman, Takahiro Mori, was quoted by Nikkei newswire as saying.

Nippon Steel did not immediately reply to a Reuters request for a comment.

The Japanese company’s debt-to-equity ratio is expected to increase to 0.9 from 0.5 as a result of the U.S. Steel deal which both companies target to close by the end of December, pending approvals.

This ratio may come down to 0.7 by the end of March if certain steps are taken, Mori told Nikkei.

($1 = 142.0100 yen)

(Reporting by Katya Golubkova; Editing by Muralikumar Anantharaman)

Related Articles

Lilium burnt through huge sums while trying to develop its jet (AFP)

German flying taxi start-up’s rescue deal collapses

A German flying taxi start-up said on Friday it would halt operations...

FILE PHOTO: U.S. Secretary of the Interior Doug Burgum speaks as he attends a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo

US energy council chief says power plants to produce 15% more electricity

By Valerie Volcovici WASHINGTON (Reuters) – U.S. Interior Secretary and co-chair of...

Cuba has inaugurated a new solar energy park in the capital Havana (AFP)

Cuba opens solar park hoping to stave off blackouts

Cuba on Friday unveiled a new solar energy park in the capital...

FILE PHOTO: Cranes unload imported iron ore from a cargo vessel at a port in Lianyungang, Jiangsu province, China October 27, 2019. REUTERS/Stringer/File Photo

Iron ore heads for weekly gain on brightening demand outlook, China stimulus hopes

By Amy Lv and Lewis Jackson BEIJING (Reuters) -Iron ore futures prices...

Login into your Account

Please login to like, dislike or bookmark this article.