Business
Nippon Steel to acquire U. S. Steel for $55/share for total enterprise value of $14.9B
- Nippon Steel Corporation (OTCPK:NISTF), Japan’s largest steelmaker to acquire United States Steel (NYSE:X) in an all-cash transaction at $55.00 per share, representing a 40% premium to X closing stock price of $39.33 on December 15.
- The $55.00 translates into an equity value of ~$14.1B and the assumption of debt, for a total enterprise value of $14.9B.
- The transaction has been approved by both the boards.
- NSC’s acquisition of U. S. Steel will expand footprint to other geographic areas in which the company can better serve all of its customers.
- The acquisition will result in higher production, thus now expecting total annual crude steel capacity of 86 million tonnes.
- The transaction is expected to close in 2Q24 or 3Q24.
- NSC plans to fund the transaction through proceeds mainly from borrowings from certain Japanese banks and has already secured financing commitments.
- The US Steel (X) board received multiple bids above $40 a share, whereby The Cleveland-Cliffs (NYSE:CLF) bid is said to be above $40 and ArcelorMittal offer would be up to $45 a share.
- US Steel (X) rejected a $7.3 billion cash and stock bid from Cliffs (CLF) in August.
- X +5.2% premarket to $41.39
- Source: Press Release
Source link
