The Japanese Nippon Steel Corporation (NSC) announced Monday that it is acquiring the iconic United States Steel Corporation after the company entertained multiple offers.
NSC will purchase U.S. Steel for $55.00 per share and assume the company’s debt equating to $14.9 billion, 40% higher than the company’s stock price as of Friday, according to a press release by U.S. Steel. The company was founded in 1901 in Pittsburgh by J.P. Morgan and Andrew Carnegie through the merger of the Federal Steel Company and the Carnegie Steel Company.
“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,” David Burritt, CEO of U.S. Steel, said in the press release. “For our U.S. Steel employees, who I continue to be thankful for, the transaction combines like-minded steel companies with an unwavering focus on safety, shared goals, values, and strategies underpinned by rich histories. For customers, U.S. Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs.”
NSC will continue to honor all agreements between U.S. Steel and the United Steelworkers Union, pointing to the company’s history of working with unions. U.S. Steel will maintain its name, brand and current American headquarters, operating under NSC.
The acquisition follows a strategy by NSC to acquire integrated steel mills to expand its global market share, according to a press release from NSC. The Japanese firm acquired Essar Steel in India in December 2019 and G Steel and GJ Steel in Thailand in March 2022.
NSC is paying nearly double what was previously offered by another U.S. Steel competitor, Cleveland Cliffs, who offered $35 per share in August to acquire the company, according to Reuters. The Luxembourg-based ArcelorMittal also recently pursued a deal with U.S. Steel.
“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,” Eiji Hashimoto, NSC president, said in the press release. “NSC has long admired U.S. Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights.”
U.S. Steel and NSC did not immediately respond to a request to comment from the Daily Caller News Foundation.
Will Kessler on December 18, 2023
