Nippon Steel takes majority stake in two Thai steelmakers

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The logos of Nippon Steel Corp. Are displayed at the company’s headquarters in Tokyo, Japan, March 18, 2019. REUTERS/Yuka Obayashi

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TOKYO, April 4 (Reuters) – Japan’s Nippon Steel Corp (5401.T) has completed the acquisition of a majority stake in two electric arc furnace steelmakers in Thailand, paying around $477 million in total, a he announced on Monday.

The company, Japan’s largest steelmaker, announced in January that it would buy Thai steelmakers G Steel PCL (GSTEEL.BK) and GJ Steel PCL (GJS.BK) in a deal worth up to $763 million, seeking to reduce its reliance on blast furnaces. that use coking coal and emit carbon dioxide. Read more

The deal, which combines a fund stake and a takeover bid, gives Nippon Steel a 60.23% stake in G Steel and 57.60% in GJ Steel, it said. he said in a statement.

Nippon Steel paid $419 million to buy nearly half of G Steel and GJ Steel, including debt, from a fund managed by Ares SSG, and 1.957 billion baht ($58.45 million) for the tender, said a spokesperson for Nippon Steel.

($1 = 33.4800 baht)

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Reporting by Yuka Obayashi Editing by David Goodman

Our standards: The Thomson Reuters Trust Principles.

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