Nippon Steel is one of Japan’s largest metallurgical corporations. News Agency Nikkei reported that the company sell part of its assets. In total, they are estimated at 200 billion yen. It is about 1.85 billion dollars. The reason lies in the fact that the Corporation is preparing to make a major acquisition. Her the necessary funds to buy the Indian company Essar Steel.
Nippon Steel’s assets should be sold until March 2021. At first it was planned to sell assets worth 100 billion yen. Dates have been set until March 2020. However, the Corporation managed to realize this last year. Therefore it was decided to expand the task.
Mainly, the Japanese company sells securities. They were bought under the schemes of cross-shareholdings. Also for sale are land. Finally sold the assets with a minimum profit. Initially, all funds were to go on the acquisition of Essar Steel. But currently, the amount of revenue exceeds the required amount. Because remaining the proceeds will be used for other purposes. This is explained Executive Vice-President Katsuhiro Miyamoto.
The Indian company will own not only the Japanese Nippon Steel. It also will own ArcelorMittal on partnership rights. Essar Steel was bankrupt. When it was announced, Nippon Steel and ArcelorMittal have made a joint proposal. Both companies offered to 6.15 billion dollars for its purchase. Another part of the funds will be allocated for modernization of the enterprise. It is reported that the size of the investment will be significant. The deal should close in the second half of 2019. However, there is some disturbance to the implementation of the plan.