The U.S. Steel Corp. was bought by Japan-based Nippon Steel Corp., the largest steelmaker in Japan, for $55 per share in all-cash. Photo courtesy of U.S. Steel.

U.S. Steel Corp. was bought by Japan-based Nippon Steel Corp. (NSC), the largest steelmaker in Japan.

NSC purchased the Pittsburgh-based steel producer for $55 per share in an all-cash transaction. The deal has an equity value of approximately $14.1 billion with added debt for a total value of $14.9 billion.

“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,” says U.S. Steel president and CEO David B. Burritt.

Officials say the acquisition combines the companies’ technologies and manufacturing capabilities. It also helps address the growing demand for high-grade steel in the U.S. and will drive the global steel industry toward decarbonization and sustainability.

The transaction is expected to close in the second or third quarter of 2024. The deal is subject to approval by U. S. Steel’s shareholders, receipt of customary regulatory approvals and other closing conditions. NSC plans to fund the transaction by borrowing from Japanese banks. It has already secured financing commitments.

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