Shearman & Sterling advised ArcelorMittal S.A. on its acquisition with Nippon Steel & Sumitomo Metal Corporation (through a 50/50 joint venture partnership) of 100% of ThyssenKrupp Steel USA from ThyssenKrupp for an agreed price of US$1.55 billion.
ThyssenKrupp Steel USA operates one of the most technologically advanced carbon steel processing facilities in the world, located in Calvert, Alabama, with a total capacity of 5.3 million tons including hot rolling, cold rolling, coating and finishing lines.
The transaction includes a six-year agreement to purchase two million tons of slab annually, using a market-based price formula, from an affiliate of ThyssenKrupp Steel that operates an integrated steel mill complex located in Rio de Janeiro, Brazil.
ArcelorMittal is the world’s leading steel and mining company, with a presence in more than 60 countries. It is the leading supplier of quality steel products in the major global steel markets, including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks. ArcelorMittal employs about 260,000 people worldwide. ThyssenKrupp Steel USA has 150,000 employees in over 80 countries working to develop solutions for sustainable progress. Nippon Steel & Sumitomo Metal Corp is an integrated steel producer, which makes a wide range of value-added steel products, in more than 15 countries.
The Shearman & Sterling team included partners Peter Lyons (New York-Mergers & Acquisitions) and George Karafotias (London-Mergers & Acquisitions) and associates Rory O’Halloran (New York-Mergers & Acquisitions), Cecilia Ferreira (London-Mergers & Acquisitions), Caitlin Ludwigsen (London-Mergers & Acquisitions), Nader Dabbo (New York-Mergers & Acquisitions), Ed Mullen (New York-Mergers & Acquisitions), Michael Dockery (New York-Mergers & Acquisitions) and Christopher Tomlinson (New York-Mergers & Acquisitions). The team also included partners Doug McFadyen (New York-Tax), Doreen Lilienfeld (New York-Executive Compensation & Employee Benefits), and Samuel Waxman (New York-Intellectual Property Transactions), counsel Jason Pratt (New York-Environmental) and Gabrielle Wong (London-Finance) and associate Jennifer Stadler (New York-Executive Compensation & Employee Benefits).
