Nippon Steel acquires U.S. Steel to move toward 100 mnt of global crude steel capacity

Japanese steel major, Nippon Steel (NSC), is acquiring the U.S. steel for $14.9 billion making a significant move to boosting Nippon Steel's global steel capacity towards 100 mnt annually.

Japan Steel announced on 18 December, it will acquire the US Steel for $55 per share, a 40% premium compared to the US Steel's closing price on 15 December ($39.33). The all-cash deal values the US Steel at $14.9 billion, including debt.

Strategic benefits

• As a result of NSC's acquisition of the U. S. Steel, it is expected that total annual crude steel capacity will reach 86 mnt accelerating progress towards NSC's strategic goal of 100 mnt of global crude steel capacity annually. The company is not only establishing a dominant position in the US market but also aiming to close the gap with China's Baowu Group, the current industry leader.
  
  
• Together with the U. S. Steel, NSC will be well-positioned to capitalize on the growing demand for high-grade steel, automotive and electrical steel, and provide excellent products and services.
  
  
• The combined entity of Nippon Steel and U.S. Steel will be a powerhouse of innovation and sustainability, bringing together cutting-edge technology and expertise to deliver high-grade steel products to customers worldwide. Both companies will share expertise to advance steelmaking, especially in energy efficiency and decarbonization.
  
  
• Moreover, both Nippon Steel and U.S. Steel share a 2050 carbon neutrality goal and will collaborate on alternative technologies.
  
  

The deal is expected to finalize in the second or third quarter of 2024. This is dependent on the approval by the U.S. Steel shareholders, customary regulatory approvals, and the fulfilment of other standard closing requirements. The acquisition strengthens Nippon steel's manufacturing and technology, making them a global leader. They also believe that, the acquisition will ultimately benefit all their stakeholders, including customers, employees, and society as a whole.