Nippon Steel to Acquire U.S. Steel in $14.9 Billion Deal, Expanding Global Presence, Sees U.S. as Growth Market Amid Declining Demand at Home

Benzinga 2023-12-18

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Japan's Nippon Steel announced plans to acquire U.S. Steel in a $14.9 billion deal, including debt. The per-share offer of $55 represents a premium of about 40% to U.S. Steel's closing price on Friday and 142% compared to its price before announcing a strategic review in August. Nippon Steel sees the U.S. as a growth market that can help offset declining demand in Japan. The acquisition would help Nippon Steel move toward its goal of 100 million tonnes of global crude steel capacity. Steel prices are also expected to rise in 2024 as auto production rebounds following the UAW strike resolution, further boosting the U.S.

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