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| Japan's Nippon Steel to acquire U.S. Steel for $14.9 billion |
| 2023-12-19 |
| Dec 18 (Reuters) - Japan's Nippon Steel (5401.T) clinched a deal on Monday to buy U.S. Steel (X.N) for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker over rivals including Cleveland-Cliffs (CLF.N), ArcelorMittal (MT.LU) and Nucor (NUE.N). The deal price of $55 per share represents a whopping 142% premium to Aug. 11, the last trading day before Cleveland-Cliffs unveiled a $35-per-share, cash-and-stock bid for U.S. Steel. It is a bet that U.S. Steel will benefit from the spending and tax incentives in President Joe Biden's infrastructure bill. Cleveland-Cliffs' pursuit prompted U.S. Steel to launch a sale process four months ago. In a meeting of its board of directors on Sunday, U.S. Steel deemed Nippon's offer superior to a sale to Cleveland-Cliffs, which had raised its bid in the high $40-per-share range, people familiar with the matter said. Nucor, the largest U.S. steelmaker, offered to acquire U.S. Steel in partnership with another company, one of the sources said. The identity of that company could not be learned. ArcelorMittal also pursued U.S. Steel, Reuters has reported. Nippon and ArcelorMittal own a plant in Alabama that produces steel sheet products by processing semi-finished products, or slabs, procured from local and overseas suppliers. They are also investing about $1 billion in an electric arc furnace. The acquisition of U.S. Steel will help Nippon, the world's fourth largest steel maker, move toward 100 million metric tons of global crude steel capacity, while significantly expanding its production in the United States, where steel prices are expected to rise as automakers ramp up production following their recent deals with labor unions to end strikes. |
| Posted by:Besoeker |
| #6 How Tennessee became the epicenter of America's auto parts manufacturing explosion |
| Posted by: Skidmark 2023-12-19 08:00 |
| #5 The factories will remain open (unless the union goes for the "Give me what I want or I kill the hostages" approach) The capacity will be here, the jobs will be here, the taxes will be paid here. Nothing about foreign ownership changes any of that. |
| Posted by: M. Murcek 2023-12-19 07:53 |
| #4 Securing their source when they have to build warships for the United States that the US can't make itself anymore. |
| Posted by: Procopius2k 2023-12-19 06:58 |
| #3 I guess I beats being bought by China. |
| Posted by: Grom the Reflective 2023-12-19 06:14 |
| #2 US Steel has been on the rails for 40+ years with its Union Issues, and I am surprised it lasted this long. Given NAFTA, it might even be cheaper to ship in many prefab steel parts, than to make them here. See United Steelworkers Union warning back in August 2023 and US Steels response. Either way, may will see this as yet another industry the Union killed. |
| Posted by: NN2N1 2023-12-19 06:12 |
| #1 Better than farmland I suppose. |
| Posted by: Skidmark 2023-12-19 03:51 |