Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

U.S. Steel surges 23% as Nippon Steel acquires it for $55/share

AuthorSenad Karaahmetovic
Published 12/18/2023, 05:39 AM
Updated 12/18/2023, 06:10 AM
© Reuters. U.S. Steel (X) rises 5% on report it will be acquired by Nippon Steel
X
-

United States Steel Corporation (NYSE:X), commonly known as U.S. Steel, is being acquired by Japan's Nippon Steel, the two companies confirmed today.

Nippon Steel will pay $55 per share in an all-cash transaction that values the company at $14.1 billion. Including the debt, the deal's enterprise value is $14.9 billion.

"The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel’s existing union contracts. We look forward to collaborating closely with the U. S. Steel team to bring together the best of our companies and move forward together as the ‘Best Steelmaker with World-Leading Capabilities’," NSC President Eiji Hashimoto said.

The agreed represents a 40% premium to U. S. Steel’s closing stock price on December 15, 2023. U.S. Steel’s market cap, as of Friday’s close, stood at $8.77 billion.

President and Chief Executive Officer of U. S. Steel, David B. Burritt, added, “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."

U.S. Steel shares added 23.2% on the report. Shares are up 57% year-to-date on M&A rumors.

Latest comments

Who knew there were so many Communists among the commenters here.
foreign investors have more control of US, Elon Musk became US citizen but???? and do not get me started on Melinia T being a foreign assest.
we can all use more slovenian nude models' assets
The gone bay and gone close
Our country is dieing financially, we need strong financial bedrock to build our economy back, each individual has he's or her rules to play let's everyone take thier investment serious and back on track let's see if our economy foundations won't be rebuild
We are losing our country
U.S. Steel today, GM tomorrow.
Ive watched steel companies along Lake Michigan being sold since 1990’s. I don’t think theirs one left ownership American USX was the last one. I now wonder about the old timers Pensions 🤔
Selling raw material companies seems to be a new trend. I'm confident this is not to any American benefit. This can easily be defeated by our own government however it seems they are in bed with the enemy.
the stock should be plunging rather than going up. US Steel has its origins in the foundation of the US industrial revolution. Selling out this icon to a foreign entity is a fatal blow to the US in more ways than just an asset transfer. a sad day.
There have been rumours about US Steel being sold for months. It's better to be Nippon Steel than Tata Steel or Arcelor Mital, that will probably shut down the operation.
pershndetje
I hope somebody sees this as a National Defense security issue.
I believe that was the last American owned steel mill left. Not sure who owns Inland steel. I grew up in steel Mill land.
Another American manufacturing giant bites the dust…
Just another sign of a dying era?
Errr....we make our military vehicles with steel made in the U.S.A.  Is it really a good idea to let a different country own our resources?  12/07/1941
Thats what I was thnking. Should be a limit for foreign procurement of critical US companies like this one for only a minority stake.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.