Japanese steelmaker Nippon Steel Corporation (NSC) has announced the acquisition of US Steel for a total value of $14.9 billion including assumed debt. The $55.00 per share purchase price represents a 40% premium to US Steel’s closing stock price on 15 December 2023 and has been unanimously approved by both companies' boards of directors.

It is claimed that NSC’s momentous acquisition will enhance the Japanese company's world-leading manufacturing and technology capabilities and enable it to expand the geographic areas in which it can better serve its stakeholders, including customers and society at large.

It is said that the transaction will further diversify the global footprint of NSC by 'significantly expanding its current production in the United States' and thereby adding to its primary geographies of Japan, ASEAN, and India. As a result of the acquisition, the expected total annual crude steel capacity of the Japanese steel giant will reach 86Mt – moving swiftly towards the company's strategic goal of 100Mt of global crude steel capacity annually.

“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide."

Eiji Hashimoto, president of Nippon Steel Corporation.

Eiji Hashimoto, president of NSC commented: “We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel. NSC has long admired US Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights. The transaction builds on our presence in the United States and we are committed to honouring all of US Steel’s existing union contracts. We look forward to collaborating closely with the US Steel team to bring together the best of our companies and move forward together as the ‘Best Steelmaker with World-Leading Capabilities’.”

Takahiro Mori, NSC's executive vice president, said, “We believe this transaction is in the best interests of our two companies, providing strong, immediate value for US Steel shareholders while enhancing NSC’s long-term growth prospects. We have a strong balance sheet and are confident in our ability to unlock the potential of bringing together NSC and US Steel through advancement in steelmaking, creating long-term value for our companies’ stakeholders, including our customers, employees, suppliers, communities, and shareholders.”

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

David B. Burritt, president and CEO of US Steel

David B. Burritt, president and CEO of US Steel, said, “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. 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 our US Steel employees, who I continue to be thankful for, the transaction combines like-minded steel companies with an unwavering focus on safety, shared goals, values, and strategies underpinned by rich histories. For customers, US Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs. Today’s announcement also benefits the United States – ensuring a competitive, domestic steel industry, while strengthening our presence globally. Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals."