BlueScope and Nippon Steel Corp establish Coated Products JV
BlueScope has agreed with Nippon Steel Corporation (NSC) of Japan to form a new joint venture encompassing BlueScope’s ASEAN and North American building products business.
The new 50:50 joint venture, called NS BlueScope Coated Products, provides a strong platform to capture expected growth in the $40 billion per annum building and construction sector in ASEAN and North America. The JV will facilitate entry into new markets not currently accessible to BlueScope.
NSC’s investment recognises an agreed enterprise valuation for the JV of US$1.36 billion. BlueScope will receive approximately US$540 million in net proceeds through NSC’s 50% acquisition of BlueScope’s interest in the businesses after allowing for taxes, minority interests and transaction costs.
The proceeds received from NSC will afford BlueScope further financial flexibility and balance sheet strength to continue to grow businesses delivering strong returns.