China’s Baosteel to buy out Nippon Steel’s 50% stake in auto steel venture

BANGKOK (AP) — China’s Baosteel says it will acquire Nippon Steel’s 50% 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, has weakened as the auto industry transitions to electric vehicles and as property construction has languished during an industry downturn. Reports said Nippon Steel opted to focus elsewhere, such as its contested bid for U.S. Steel. Baosteel’s share price fell 2.5% on Tuesday. Nippon Steel’s shares were up 0.3%.