China’s Baosteel said on Tuesday that it will acquire Nippon Steel’s 50 per cent stake in their auto steel joint venture for about $242 million.
The contract for the joint venture, Baosteel Nippon Steel Automotive Steel Sheets, was due to expire on July 30.
Demand for steel in China has weakened as the auto industry transitions to electric vehicles.
The Japanese newspaper Nikkei said Nippon Steel intends to focus elsewhere, such as on its contested bid for US Steel.
Baosteel’s share price fell 2.5 per cent on Tuesday. Nippon Steel’s shares were up 0.3 per cent.
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