Fri Sep 20 07:33:00 UTC 2024: ## Nippon Steel to Sell Assets Amid Uncertain US Steel Acquisition
**Tokyo, Japan** – Nippon Steel, the Japanese steel giant, plans to sell off at least 30 billion yen ($211 million) in assets this fiscal year to manage its debt load, according to the Nikkei. This move comes as the company awaits a decision on its $14.9 billion bid for U.S. Steel, a deal facing political opposition in the United States.
Nippon Steel secured $16 billion in loans from three Japanese megabanks to finance the U.S. Steel acquisition earlier this year. However, the deal is facing scrutiny ahead of the November 5 presidential election, raising uncertainty about its future.
To enhance capital efficiency and mitigate the potential impact of the US Steel acquisition, Nippon Steel plans to sell assets including real estate and inventory. This will help the company manage its debt-to-equity ratio, which is projected to rise from 0.5 to 0.9 if the U.S. Steel deal goes through. The company aims to bring this ratio down to 0.7 by March if it takes the necessary steps.
Nippon Steel has not yet responded to Reuters’ request for comment on the matter. The acquisition of U.S. Steel is currently targeted for completion by the end of December, subject to regulatory approvals.
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