12/19/2023

Japan's Nippon Steel to Acquire U.S. Steel for $14.9 Billion

U.S. Steel deemed Nippon's offer superior to a sale to Cleveland-Cliffs

Japan's Nippon Steel clinched a deal on Monday to buy U.S. Steel for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker over rivals including Cleveland-Cliffs, ArcelorMittal and Nucor.

The deal price of $55 per share represents a whopping 142 percent premium to August 11, the last trading day before Cleveland-Cliffs unveiled a $35-per-share, cash-and-stock bid for U.S. Steel. It is a bet that U.S. Steel will benefit from the spending and tax incentives in President Joe Biden's infrastructure bill.

Cleveland-Cliffs' pursuit prompted U.S. Steel to launch a sale process four months ago. In a meeting of its board of directors on Sunday, U.S. Steel deemed Nippon's offer superior to a sale to Cleveland-Cliffs, which had raised its bid in the high $40-per-share range, people familiar with the matter said.

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