Current:Home > reviewsStoried US Steel to be acquired for more than $14 billion by Nippon Steel -InvestTomorrow
Storied US Steel to be acquired for more than $14 billion by Nippon Steel
View
Date:2025-04-11 16:51:31
U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion.
The transaction is worth about $14.9 billion when including the assumption of debt.
The price tag for U.S. Steel is nearly double what was offered just four months ago by rival Cleveland Cliffs. U.S. Steel, which rejected that offer, confirmed the offering price from Nippon early Monday.
U.S. Steel will keep its name and its headquarters in Pittsburgh, where it was founded in 1901 by J.P. Morgan, Andrew Carnegie. Nippon said that it will also honor all collective bargaining agreements in place with the United Steelworkers and other employees, and is committed to maintaining its relationship with workers.
Soaring prices have helped fuel consolidation in the steel industry this decade. Steel prices more than quadrupled near the start of the pandemic to near $2,000 per metric ton by the summer of 2021 as supply chains experienced gridlock, a symptom of surging demand for goods and the lack of anticipation of that demand.
Nippon, which will pay $55 per share for U.S. Steel, said Monday that the deal will bolster its manufacturing and technology capabilities. It will also expand Nippon’s production in the U.S. and add to its positions in Japan, India and the ASEAN region.
Nippon said the acquisition is anticipated to bring its total annual crude steel capacity to 86 million tons and help it capitalize on growing demand for high-grade steel, automotive and electrical steel.
“The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel’s existing union contracts,” Nippon President Eiji Hashimoto said in a prepared statement.
U.S. Steel CEO David Burritt said that the sale is beneficial to the United States, “ensuring a competitive, domestic steel industry, while strengthening our presence globally.”
The acquisition has been approved by the boards of both companies and is targeted to close in the second or third quarter of 2024. It still needs approval from U.S. Steel shareholders.
Shares of United States Steel Corp. soared more than 27% before the opening bell Monday.
veryGood! (1858)
Related
- Intellectuals vs. The Internet
- With bison herds and ancestral seeds, Indigenous communities embrace food sovereignty
- Tomb holding hundreds of ancient relics unearthed in China
- Pakistan zoo shut down after man mauled to death by tigers, shoe found in animal's mouth
- Small twin
- Captive in a chicken coop: The plight of debt bondage workers
- ‘Shadows of children:’ For the youngest hostages, life moves forward in whispers
- A hospital fire near Rome kills at least 3 and causes an emergency evacuation of all patients
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- US vetoes UN resolution backed by many nations demanding immediate humanitarian cease-fire in Gaza
Ranking
- Trump wants to turn the clock on daylight saving time
- Greyhound bus service returns to Mississippi’s capital city
- Third victim ID'd in UNLV shooting as college professors decry 'national menace'
- Red Wings captain Dylan Larkin lies motionless on ice after hit from behind
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- A Soviet-era statue of a Red Army commander taken down in Kyiv
- Ukraine’s Zelenskyy heads to Argentina in bid to win support from developing nations
- Europe reaches a deal on the world's first comprehensive AI rules
Recommendation
Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
Kylie Jenner's Interior Designer Reveals the Small Changes That Will Upgrade Your Home
Anthony Davis leads Lakers to NBA In-Season Tournament title, 123-109 over Pacers
Eagles head of security Dom DiSandro banned from sideline for Sunday's game vs. Cowboys
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
'Tis The Season For Crazy Good Holiday Deals at Walmart, Like $250 Off A Dyson Vacuum
New York’s governor calls on colleges to address antisemitism on campus
Thousands demonstrate against antisemitism in Berlin as Germany grapples with a rise in incidents