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

Associated Press

Sweltering temperatures persist across the US, while floodwaters inundate the Midwest

Millions of Americans sweated through a scorching weekend as temperatures soared across the U.S., while residents were rescued from floodwaters that forced evacuations across the Midwest. One person was killed during flooding in South Dakota, the governor said. From the mid-Atlantic to Maine, across the Great Lakes region, and throughout the West to California, public […]

1 hour ago

Associated Press

3 Columbia University administrators put on leave over alleged text exchange at antisemitism panel

NEW YORK (AP) — Columbia University said it has placed three administrators on leave while it investigates allegations that they exchanged unprofessional text messages while attending a panel discussion about antisemitism on campus. The university said the administrators work for its undergraduate Columbia College, which hosted the panel discussion “Jewish Life on Campus: Past, Present […]

8 hours ago

Associated Press

Man charged in shooting that critically wounded Philadelphia officer, police say

PHILADELPHIA (AP) — A 36-year-old Philadelphia man was charged Sunday with attempted murder in connection with a shooting that critically wounded a police officer after a traffic stop, police said. Ramon Rodriguez Vazquez also faces charges that include aggravated assault and home invasion, police said. The 31-year-old officer and his partner stopped a car carrying […]

10 hours ago

Associated Press

California boy, 4, who disappeared from campground found safe after 22 hours alone in wilderness

FRESNO, Calif. (AP) — A 4-year-old California boy who wandered away from a campground in the Sierra National Forest was found safe after spending 22 hours alone in the wilderness, authorities said. A search-and-rescue team of about 50 officers and volunteers set out around 11 a.m. Thursday after the child was reported missing from the […]

11 hours ago

Associated Press

One man died and five others were hospitalized in downtown St. Louis shooting

ST. LOUIS (AP) — One man is dead and five others have been wounded in a downtown St. Louis shooting, police said. Police believe women were fighting in a park when men interfered and drew firearms, according to social media posts from the agency. The man who died was in his mid-twenties, police said. Five […]

11 hours ago

Associated Press

Michigan sheriff’s deputy fatally shot pursuing a stolen vehicle in Detroit

DETROIT (AP) — A Michigan county sheriff’s deputy was fatally shot while pursing a suspected stolen vehicle in Detroit, the Oakland County sheriff’s office said Sunday. Bradley J. Reckling, who was on duty in an unmarked car, was following a 2022 Chevy Equinox Saturday evening after the vehicle was reported stolen earlier in the day […]

12 hours ago

Sponsored Articles

...

Collins Comfort Masters

Here’s how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

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