Nippon Steel to sell $211 million in assets to manage debt amid US Steel deal
· CNA · JoinTOKYO : Nippon Steel plans to sell at least 30 billion yen ($211 million) in assets in this fiscal year to manage its debt, the Nikkei quoted its vice chairman as saying on Friday, as it waits to know the fate of its $14.9 billion bid for U.S. Steel.
Earlier this year, Nippon Steel agreed with three Japanese megabanks for $16 billion in loans to fund the acquisition of U.S. Steel. However, the deal is facing political opposition in the United States amid the Nov. 5 presidential elections.
Nippon Steel plans to sell at least 30 billion yen in assets including real estate and inventories to improve capital efficiency amid the U.S. Steel takeover, the Japanese steelmaker's vice chairman, Takahiro Mori, was quoted by Nikkei newswire as saying.
Nippon Steel did not immediately reply to a Reuters request for a comment.
The Japanese company's debt-to-equity ratio is expected to increase to 0.9 from 0.5 as a result of the U.S. Steel deal which both companies target to close by the end of December, pending approvals.
This ratio may come down to 0.7 by the end of March if certain steps are taken, Mori told Nikkei.
($1 = 142.0100 yen)
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