Nippon Steel Corp. will take on about $800 million in debt as part of the deal; U.S. Steel to retain its brand name and Pittsburgh headquarters
United States Steel Corp. (U.S. Steel), once a pillar of American industrial might, has been acquired by Nippon Steel Corp. (NSC), Japan’s largest steel maker.
The all-cash transaction at $55.00 per share, plus the assumption of debt, brings the total value of deal to $14.9 billion.
The transaction has been unanimously approved by the Board of Directors of both NSC and U. S. Steel.
NSC says the acquisition will significantly expand its current production in the United States, adding to its primary geographies of Japan, ASEAN and India. The company expects its total annual crude steel capacity will reach 86 million metric tonnes (about 89.7 million U.S. tons) accelerating progress towards NSC’s strategic goal of 100 million metric tonnes of global crude steel capacity annually.
“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel,” said NSC President Eiji Hashimoto, who added that NSC is committed to honoring all of U. S. Steel’s existing union contracts.
“This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process,” said David Burritt, President and CEO of U. S. Steel. Burritt said the two company’s “…shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”
The transaction is expected to close in the second or third quarter of calendar year 2024, subject to approval by U. S. Steel’s shareholders, receipt of customary regulatory approvals and other closing conditions.
