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China's Baosteel to buy out Nippon Steel's 50% stake in auto steel venture

China’s Baosteel says it will acquire Nippon Steel’s 50% stake in their auto steel joint venture for about $242 million

Via AP news wire
Tuesday 23 July 2024 10:26 BST
China Nippon Steel
China Nippon Steel (Copyright 2021 The Associated Press. All rights reserved)

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China’s Baosteel said Tuesday that it will acquire Nippon Steel’s 50% stake in their auto steel joint venture for about $242 million.

The contract for the joint venture, Baosteel Nippon Steel Automotive Steel Sheets, was due to expire on July 30.

Demand for steel in China has weakened as the auto industry transitions to electric vehicles.

The Japanese newspaper Nikkei said Nippon Steel intends to focus elsewhere, such as on its contested bid for U.S. Steel.

Baosteel’s share price fell 2.5% on Tuesday. Nippon Steel’s shares were up 0.3%.

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