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Manufacturing & engineering

US Steel bought by Nippon Steel in $14.1bn deal

US Steel has been bought by Nippon Steel in a $14.1 billion deal.

In a statement on Monday, the Japanese group said it plans to buy US Steel in an all-cash transaction at $55 per share, which represents a 40% premium to the US steelmaker’s closing share price on Friday.

It is the Japanese group’s biggest ever acquisition and part of a growing wave of Japanese overseas acquisitions, which has accelerated despite the weakness of the yen.

US Steel had been considering strategic options from earlier this year and in August it rejected a $7.32 billion bid from rival Cleveland-Cliffs.

The deal is expected to close in the second or third quarter of 2024.

US Steel president and chief executive Officer David Burritt, said: "This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process."

"For customers, US Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs," he added.

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