Nippon Steel buys majority stakes in 2 Thai steelmakers

[TOKYO] Japan's Nippon Steel has completed its acquisition of majority stakes in 2 electric arc furnace steelmakers in Thailand, paying about US$477 million in total, it said on Monday (Apr 4).

The company, Japan's biggest steelmaker, said in January that it will buy Thai steelmakers G Steel and G J Steel in a deal worth up to US$763 million, seeking to cut its reliance on blast furnaces that use coking coal and emit carbon dioxide.

The deal, which combined a purchase of a stake from a fund and a tender offer, gives Nippon Steel a 60.23 per cent stake in G Steel and 57.60 per cent of G J Steel, it said in a statement.

Nippon Steel paid US$419 million to buy nearly a half of G Steel and G J Steel, including debt, from a fund managed by Ares, and 1.957 billion baht (S$79.3 million) for the tender, a Nippon Steel spokesperson said. REUTERS