PITTSBURGH (KDKA) — The United States Steel Corporation is being purchased by the Nippon Steel Corporation, the largest steelmaker in Japan.
The companies announced the news of the purchase early Monday morning and say that it will be an all-cash transaction at a value of $55 per share, making the total deal worth nearly $15 billion, including Nippon acquiring U.S. Steel’s debt.
As part of the agreement, U.S. Steel, which was founded in 1901 by Andrew Carnegie, J.P. Morgan, and Charles Schwab, will keep its iconic name and headquarters in Pittsburgh and all collective bargaining agreements with the United Steelworkers Union will be honored.
The companies say that Nippon acquiring U.S. Steel will lead to the combining of ‘world-leading technologies and manufacturing capabilities’ and that it will allow them to serve their customers better 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 in part.
“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.
U.S. Steel also received a bid for nearly $8 billion from the industrial conglomerate Esmark in the weeks following that rejected bid from Cleveland Cliffs.
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