NSC has agreed to acquire US Steel in an all-cash transaction worth $14.9bn including debt.
Under the terms of the definitive agreement, the Japanese steel-maker will pay $55.00 (Y7,953) per share for US Steel, representing a premium of 40% to the latter’s closing stock price on 15 December 2023.
NSC expects the acquisition of US Steel to improve its manufacturing and technology capabilities while allowing it to expand its geographical footprint.
The transaction will combine technologies of NSC and US Steel to further innovation and deliver high-grade steel products. It will also help to address increasing demand for high-grade steel globally, the US-based company said.
NSC president Eiji Hashimoto said: “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 decarbonisation of steel.
“We look forward to collaborating closely with the US Steel team to bring together the best of our companies and move forward together as the ‘Best Steelmaker with World-Leading Capabilities’.”
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The acquisition is expected to increase NSC’s total annual crude steel capacity to 86 million tonnes and contribute to its goal of reaching production of 100mt of global crude steel capacity annually.
US Steel president and CEO David B Burritt said: “For customers, US 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 decarbonisation focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”
Upon completion of the transaction, US Steel plans to retain its brand, name and headquarters in Pittsburgh, Pennsylvania, US.
Subject to approval by shareholders of US Steel, receipt of customary regulatory approvals and other customary closing conditions, the transaction is scheduled to close in the second quarter (Q2) or Q3 2024.