Nippon Steel Corporation (NSC) has announced plans to purchase United States Steel Corporation. NSC, which is one of Japan’s largest steelmakers, made an all-cash offer of $55.00 per share. This represents an equity value of $14.1 billion plus the assumption of debt, for a total enterprise value of $14.9 billion. The transaction was approved by both NSC’s and U. S. Steel’s board of directors. According to NSC, the acquisition will allow the company to expand into new geographic areas, helping the company better serve its shareholders and customers. The acquisition will help NSC reach a total annual crude steel capacity of 86 million tonnes, bringing them closer to their strategic goal of 100 million tonnes of global crude steel capacity annually.
In a recent quote, President and Chief Executive Officer of U. S. Steel, David B. Burritt, said, “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. This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process. 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. Today’s announcement also benefits the United States – ensuring a competitive, domestic steel industry, while strengthening our presence globally. Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”