Key facts
- Nippon Steel will acquire U.S. Steel for $14.9 billion.
- The deal includes $5.8 billion in cash and $7.1 billion in stock.
- U.S. Steel shareholders will receive $55 per share.
- The transaction is expected to close in the second half of 2024.
- The deal requires regulatory approval and shareholder consent.
Nippon Steel, Japan's largest steelmaker, has agreed to acquire U.S. Steel in a cash and stock transaction valued at approximately $14.9 billion, including debt. The deal, announced Monday, will see Nippon Steel pay $55 per share in cash and stock to U.S. Steel shareholders. This represents a 40% premium over U.S. Steel's closing price on Friday. The transaction is expected to be completed in the second half of 2024, pending approval from U.S. Steel shareholders and regulatory bodies in various jurisdictions. U.S. Steel's board of directors has unanimously approved the agreement. Nippon Steel stated that it intends to retain the U.S. Steel name and its headquarters in Pittsburgh, Pennsylvania, and that it is committed to maintaining U.S. Steel's unionized workforce and its existing collective bargaining agreements. The acquisition aims to enhance Nippon Steel's global presence and technological capabilities, particularly in the North American market. U.S. Steel shares surged 26% in premarket trading following the announcement.