Nippon Steel buys majority stakes in two Thai firms from Ares SSG fund

Japan’s Nippon Steel Corp has completed its acquisition of majority stakes in two electric arc furnace steelmakers in Thailand, paying about $477 million in total, it said on Monday.

The company, Japan’s biggest steelmaker, said in January that it will buy Thai steelmakers G Steel PCL and G J Steel PCL in a deal worth up to $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% stake in G Steel and 57.60% of G J Steel, it said in a statement.

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

Reuters

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