Nippon Steel will sell its stake in the Calvert joint venture if it succeeds in acquiring US Steel

Nippon Steel says it will sell its entire stake in its steel joint venture with ArcelorMittal if it succeeds in its bid for U.S. Steel.

Reuters reported that NS Kote Holdings, a steel joint venture between Nippon Steel and ArcelorMittal, is based in Calvert, Alabama. Nippon Steel has a 50 per cent stake in the venture.

Nippon Steel said in a statement Friday that if it sold its stake in NS Kote Holdings to ArcelorMittal for one dollar, Nippon Steel would incur a consolidated loss of about 230 billion yen.

If Nippon Steel's acquisition of United States Steel is not completed for any reason, Nippon Steel will not resell its shares in NS Kote to ArcelorMittal, which will have no impact on the earnings performance of NS Kote Holdings, "the statement said.

In December, Nippon Steel and U.S. Steel agreed to a $14.9 billion deal, with Nippon pledging to inject capital to keep the Pennsylvania plant competitive and to build new small mills in the southern United States. However, the acquisition has caused a strong backlash in the United States, with Democratic presidential candidate Harris and Republican presidential candidate Donald Trump also opposing the acquisition.

Us Steel has warned that it could be forced to close its headquarters and plants in Pennsylvania, one of the key battleground states in November's presidential election, if the takeover is blocked.

Nippon Steel executives and the chief executive of US Steel will meet senior US officials to try to salvage the takeover, people familiar with the matter said on September 11.