Nippon Steel to buy US Steel for $14.9 billion
Tokyo, December 18
Japan’s Nippon Steel on Monday said it would buy US Steel in a deal valued at $14.9 billion including debt, months after the steelmaker put itself up for sale.
The per-share offer of $55 represents a premium of about 40% to US Steel’s Friday’s close and 142% compared to the stock’s closing price before the company announced a strategic review process on August 11, 2023.
US Steel’s shares rose about 27% in pre-market trading.
Nippon, the world’s No. 4 steelmaker, sees the US as a growth market that can help to offset declining demand in Japan, the Nikkei daily, which earlier reported the deal, said.
Nippon has secured financing commitments for the deal and expects it will enable the company to move toward 100 million tonnes of global crude steel capacity. — Reuters
