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| global steel industry |
Global Steel Industry Faces Major M&A Transformations in 2024-2025
The global steel industry undergoes significant restructuring through major mergers and acquisitions in 2024-2025. Nippon Steel's $14.9 billion acquisition of US Steel marks the largest deal in Japan's steel history. This move, approved by the US government with a “golden share” mechanism, ensures national oversight while allowing Nippon Steel to integrate US Steel globally. Nippon Steel commits $11 billion investment in US assets by 2028, underscoring strategic long-term plans.
Meanwhile, ArcelorMittal actively expands its presence by acquiring Nippon Steel’s stake in the AM/NS Calvert joint venture, investing over $3 billion to modernize its Alabama facilities. This includes building a new electric arc furnace (EAF) and producing non-grain-oriented electrical steel, turning Calvert into a key American hub. ArcelorMittal also restructures European assets, selling Bosnian plants and investing in the French and Latin American pipe markets.
European Asset Optimization and Raw Material Investments
European steel players focus on asset optimization amid changing market dynamics. Thyssenkrupp partners with Czech EP Corporate Group for joint ventures, while voestalpine strengthens its welding technology through acquisitions. Jindal Steel invests €150 million in Czech green transformation projects, and Italy’s Marcegaglia commits €600 million to modernize Ascometal.
Raw material investments continue, with Japan’s Mitsui investing $5 billion in Australia’s Rhodes Ridge iron ore project and Nippon Steel acquiring 49% of the Canadian Kami project. These efforts aim to diversify supply chains and secure direct reduced iron (DRI) sources.
Challenges and Market Reconfiguration
Liberty Steel faces significant setbacks with asset sales and government interventions amid bankruptcy risks. Salzgitter AG opts for independence, emphasizing hydrogen transformation and efficiency improvements. Spain’s Grupo Celsa sells UK and Scandinavian plants to reduce debt. Italy’s Acciaierie d’Italia remains under state control with negotiations underway for an Azerbaijani consortium takeover.
Overall, these M&A activities reshape global steel production geography. Japan strengthens its US foothold while ArcelorMittal consolidates North and South American markets. Europe experiences continued asset redistribution, driven by trade barriers and market competition.
ScrapInsight Commentary
The wave of steel industry M&As signals strategic shifts in production and supply chains. Nippon Steel and ArcelorMittal’s investments highlight their focus on regional dominance and raw material security. This restructuring will likely increase scrap steel demand as companies pursue efficient, sustainable production models.
