Japan's Nippon Steel to buy U.S. Steel in $14.9 bln deal
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Update time : 2023-12-19 16:21:23
Washington, Dec. 18 (BNA): Japan's Nippon Steel said on Monday it would buy U.S. Steel in a deal valued at $14.9 billion, helping it add significant capacity in a key market that is primed for a price hike.
U.S. Steel's shares rose about 28% to $50.35 in premarket trading but were still trading well below the offer price of $55. That represented a premium of 142% since the company announced a strategic review process on Aug. 11.
The all-cash offer represents an equity value of about $14.1 billion and the world's No.4 steelmaker said it had secured financing commitments to fund the transaction, Reuters reported.
The deal is expected to help Nippon move toward 100 million tonnes 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.
