UNITED STATES NEWS

Storied US Steel to be acquired for more than $14 billion by Nippon Steel

Dec 18, 2023, 4:49 AM | Updated: 5:14 am

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.

United States News

A calendar shows the month of February, including leap day, Feb. 29, on Friday, Feb. 23, 2024, in S...

Associated Press

Have a look at the whos, whats and whens of leap year through time

NEW YORK (AP) — Leap year. It’s a delight for the calendar and math nerds among us. So how did it all begin and why? Have a look at some of the numbers, history and lore behind the (not quite) every four year phenom that adds a 29th day to February. BY THE NUMBERS The […]

7 hours ago

FILE - Bridgeport Mayor Joe Ganim greets supporters outside Central High School on the day of the r...

Associated Press

Fatigue and frustration as final do-over mayoral election looms in Connecticut’s largest city

BRIDGEPORT, Conn. (AP) — It’s been nearly four months since a judge tossed out the results of a Democratic mayoral primary in Connecticut’s largest city due to allegations of ballot stuffing, sending voters repeatedly back to the polls and thrusting Bridgeport into an unflattering national spotlight. Many frustrated local voters say they just want it […]

7 hours ago

Homes are seen on Thursday, Feb. 22, 2024, in the southwest Portland, Ore., suburb of Beaverton. Th...

Associated Press

A housing shortage is testing Oregon’s pioneering land use law. Lawmakers are poised to tweak it

PORTLAND, Ore. (AP) — A severe lack of affordable housing has prompted Oregon lawmakers to consider chipping away at a 1970s law that made the state a national leader in leveraging land use policy to prevent suburban sprawl and conserve nature and agriculture. The so-called urban growth boundary, a sacred cow of Oregon’s liberal politics, […]

7 hours ago

Republican presidential candidate former President Donald Trump hugs and kisses the American flag a...

Associated Press

Trump calls himself a ‘proud political dissident’ in CPAC speech

In a CPAC speech, Trump painted an apocalyptic vision of the future if President Joe Biden wins again as the two prepare for a rematch.

11 hours ago

Republican presidential candidate former President Donald Trump gestures to the audience after spea...

Associated Press

Donald Trump wins South Carolina GOP primary, beating Nikki Haley in her home state

Trump has now swept every contest that counted for Republican delegates, with wins already in Iowa, New Hampshire and Nevada.

11 hours ago

Associated Press

Why AP called South Carolina for Trump: Race call explained

WASHINGTON (AP) — The Associated Press declared Donald Trump the winner of the South Carolina primary as soon as polls closed on Saturday. The race call was based on a comprehensive survey of South Carolina Republican primary voters that showed him defeating Nikki Haley by wide margins in her home state. Declaring a winner as […]

12 hours ago

Sponsored Articles

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Day & Night Air Conditioning, Heating and Plumbing

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

...

Sanderson Ford

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.

Storied US Steel to be acquired for more than $14 billion by Nippon Steel