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

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PHOTO CREDIT: Hiro Komae ' src='https://biztimes.biz/wp-content/uploads/2024/07/669f7abb54e12.image_.jpg'/>

FILE - Nippon Steel Corporation's logo is displayed on a sign outside its headquarters in Tokyo on Nov. 26, 2021. China’s Baosteel said Tuesday that it will acquire Nippon Steel’s 50% stake in their auto steel joint venture for about $242 million. (AP Photo/Hiro Komae, File)

PHOTO CREDIT: Hiro Komae

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Posted By: The Associated Press July 23, 2024

BANGKOK — China’s Baosteel said today 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% today. Nippon Steel’s shares were up 0.3%.