US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal.
The deal marks the latest step in a gradual decline for the iconic 122-year old company, which was once the largest company on the planet. It was one of the first major conglomerates and a symbol of American industrial might.
But it is no longer even the largest US steelmaker, having been surpassed by Nucor Steel years ago.
“We are confident that … this combination is truly best for all,” said US Steel CEO David Burritt. “Today’s announcement also benefits the United States — ensuring a competitive, domestic steel industry, while strengthening our presence globally.”
“US Steel’s best days are ahead, together,” Burritt told investors at the conclusion of a conference call Monday.
Under terms of the deal, US Steel’s operations will retain its name and will continue to have a headquarters in Pittsburgh. But the deal could still stir opposition.
Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and started considering other bids.
The union, which has 11,000 members at US Steel, attacked the Nippon Steel deal on Monday.
“To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long,” said USW President David McCall. “We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.”
https://www.cnn.com/2023/12/18/investing/us-steel-nippon-steel-deal/index.html
Good Morning Everyone! Adobe and Figma $20 billion dollar deal falls apart this morning and Nippon Steel Agrees to Buy US Steel for $14.1 billion.
Busy start! Here’s what's coming up this week:
– Tuesday: Housing Starts, FedEx reports
– Wednesday: Existing Home Sales, Micron… pic.twitter.com/DEdPcqraC9
— Genevieve Roch-Decter, CFA (@GRDecter) December 18, 2023
#USSteel Board of Directors unanimously approved the acquisition of U. S. Steel by Nippon Steel, a global leader in steelmaking, innovation and decarbonization. We look forward to becoming the ‘Best Steelmaker with World-Leading Capabilities.’ https://t.co/SGptpF4NWd pic.twitter.com/6NLPgS9aae
— U. S. Steel (@U_S_Steel) December 18, 2023
5️⃣ stories you need to know today: US defense secretary arrives in Israel for talks expected to focus on ending the high intensity war in Gaza and its transition to a more limited, focused conflict, Japan’s Nippon Steel to buy US Steel in $14.9 billion deal, and more pic.twitter.com/U0UKqxmAlt
— Reuters (@Reuters) December 18, 2023
Japan’s Nippon Steel will acquire U.S. Steel for $14.1 billion after the Pittsburgh-based giant put itself up for sale earlier this year. The union between the two companies would create an industry behemoth and the second largest steel maker in the world. U.S. Steel was founded in 1901 by J.P. Morgan and Andrew Carnegie,
The Wall Street Journal notes, and “played an integral role in the country’s industrialization in the 20th century.” It was once the largest company in the world. The deal will head to U.S. Steel’s shareholders and federal regulators for approval.
https://www.linkedin.com/news/story/us-steel-sold-to-japanese-group-5852092/
h/t Digital mix guy Spock