U.S. Steel to be acquired in $14 billion deal

U.S. Steel, which owns Big River Steel and other operations in Northeast Arkansas, is being acquired by Tokyo-based Nippon Steel Corp. in a $14.1 billion deal, the companies announced Monday (Dec. 18).

Nippon will pay $55 per share in an all-cash transaction, a 40% premium, for U.S. Steel. The companies said in a joint press release that U.S. Steel will retain its iconic name and headquarters in Pittsburgh.

Nippon Steel Corp. (NSC) is Japan’s largest steelmaker and one of the world’s leading steel manufacturers. The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the third quarter of 2024.

“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel. NSC has long admired U. S. Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights. 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. 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 NSC President Eiji Hashimoto.

“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,” said U.S. Steel President and Chief Executive Officer of U. S. Steel David Burritt.

Mississippi County in Northeast Arkansas is the largest steel-producing county in the U.S. It is home to the former Big River Steel project, owned by U.S. Steel. It is also the site of a proposed $3 billion U.S. Steel facility that is expected to come online in 2024.