U.S. Steel to be Taken Over by Nippon Steel for $15B

Pittsburgh, PA-based steel giant U.S. Steel is being sold to Nippon Steel (NSC), Japan’s largest steelmaker, for nearly $15 billion in cash.

Nippon will pay $55 per share, representing an equity value of approximately $14.1 billion plus the assumption of debt, for a total enterprise value of $14.9 billion. The transaction was unanimously approved by the boards of both companies.

NSC said it would honor all current agreements on wages and working conditions reached with the United Steelworkers Union.

“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.

Over the summer, U.S. Steel said it received “multiple, credible bidders” for the company over the summer, and in mid-August, it rejected Cleveland-Cliffs’ $7.3 billion acquisition deal.

A second all-cash bid from privately held Sewickley-based Esmark Inc. quickly followed; ArcelorMittal, a Luxembourg-based multinational, and Charlotte-based Nucor Corp. also expressed interest in the steelmaker.

The transaction is expected to close in the second or third quarter of 2024. NSC plans to fund the transaction through proceeds mainly from borrowings from certain Japanese banks and has already secured financing commitments.