The Nippon Steel Corp. is acquiring Pittsburgh-based United States Steel Corp. for about $14.1 billion.
The board's at both companies unanimously approved the deal. The Japan-based steelmaker will also take on U.S. Steel's debt, which results in a $4.9 billion commitment.
“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,” said NSC President Eiji Hashimoto in a press release. “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.”
Hashimoto also said his company will honor U.S. Steels current union contracts with the United Steelworkers Union.
“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,” said David Burritt, president and chief executive officer of U. S. Steel. “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.”
Cleveland-Cliffs Inc. went public with an offer in July to buy U.S. Steel after the bid was rejected. It offered U.S. Steel $35 a share in cash and shares of Cleveland-Cliffs stock. The bid touched of a series of offers. U.S. Steel ultimately sold for $55 a share as of the closing stock price on Dec. 15.
U.S. Rep. Frank J. Mrvan, vice chairman of the Congressional Steel Caucus, was on board with the Cleveland-Cliffs offer. He said he was disappointed about the sale to a foreign company. He said he will make sure the deal is fully investigated.
“Since day one, I have stood with labor and voted to support transformational federal investments in the American steel industry, and now that we are poised for robust growth in the coming months and years from these actions, we must not allow foreign ownership of U.S. Steel to jeopardize the strength of our economy, our national security, and the livelihoods of steel-producing communities throughout our nation,” Mrvan said in a press release.
U.S. Steel Founded in 1901, U.S. Steel produces low-cost iron ore, mini mill steelmaking and finishing. The company has the capability of producing 22.4 million net tons of steel a year. U.S. Steel has operations across the U.S. and in central Europe. The company’s locations in Indiana include East Chicago, Gary and Portage.
