Steel Merger Announcement
The United States Steel Corporation is set to be acquired by the Nippon Steel Corporation, the largest steelmaker in Japan. The companies announced the news of the purchase early Monday morning.
The deal will be an all-cash transaction at a value of $55 per share, making the total deal worth nearly $15 billion. This includes Nippon acquiring U.S. Steel's debt. As part of the agreement, U.S. Steel will retain its name and headquarters in Pittsburgh. Additionally, all collective bargaining agreements with the United Steelworkers Union will be honored.
The merging of the two companies is expected to result in the combining of "world-leading technologies and manufacturing capabilities." This will allow them to better serve their customers both in the United States and around the world. "NSC has a proven track record of acquiring, operating, and investing in steel mill facilities globally – and we are confident that, like our strategy, this combination is truly Best for All," said David Burritt, President and CEO of U.S. Steel.
"Best Steelmaker with World-Leading Capabilities" - Nippon Steel Corporation President
"We look forward to collaborating closely with the U. S. Steel team to bring together the best of our companies and move forward together as the 'Best Steelmaker with World-Leading Capabilities,'" said Nippon Steel Corporation President Eiji Hashimoto in part.
This deal with Nippon has been unanimously approved by the Board of Directors at both companies and is expected to be complete in the second or third quarter of 2024. The deal still needs approval from U.S. Steel shareholders.
The companies will be holding a conference call at 8 a.m. to discuss details of the deal.
Earlier this year, U.S. Steel said it was considering a sale and had received multiple buyout offers after rejecting an unsolicited offer from rival Cleveland-Cliffs worth just over $7 billion.
