Nippon Steel plans to transfer technology to US Steel’s facilities, upon completion of the deal. Credit: Poetra.RH / Shutterstock.

Japanese company Nippon Steel is planning to divest assets worth at least Y30bn ($211m) within this fiscal year, reported Nikkei via Reuters, citing the company’s vice chairman Takahiro Mori.

The move is aimed at managing the company’s debt as it anticipates the outcome of its bid to acquire US Steel.

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In December 2023, Nippon Steel reached an agreement to acquire US Steel in an all-cash deal valued at $14.9bn, including debt.

The latest asset sale, which includes real estate and inventories, is part of the company’s strategy to improve capital efficiency, especially in light of the ongoing takeover attempt of US Steel.

Earlier this year, Nippon Steel secured a $16bn loan agreement with three major Japanese banks to fund the acquisition.

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However, the deal has encountered political resistance in the US, with the presidential elections set for 5 November adding to the uncertainty.

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Last month, Nippon Steel said it was looking to invest $1.3bn (Y187.87bn) at US Steel’s Mon Valley Works and Gary Works facilities in the US.

These investments aim to extend the production life of key integrated assets and secure steel supply for US manufacturers.

Nippon Steel also plans to transfer technology to US Steel’s facilities, which aims to reduce environmental impact and enhance longevity, upon completion of the deal.

Furthermore, Nippon Steel signed an agreement to evaluate and assist with the maintenance and operations of US Steel’s blast furnaces.

These investments are subject to completion of the acquisition and regulatory approvals.

However, the merger received all regulatory clearances outside of the US.