PITTSBURGH (KDKA) — United States Steel Corporation is being purchased by Nippon Steel Corporation, Japan's largest steel manufacturer.
The companies announced news of the purchase early Monday morning and say it will be an all-cash transaction valued at $55 per share, making the total deal worth nearly $15 billion, including the acquisition of US Steel's debt by Nippon.
As part of the agreement, US Steel, founded in 1901 by Andrew Carnegie, JP Morgan and Charles Schwab, will maintain its iconic name and headquarters in Pittsburgh and all collective bargaining agreements with the United Steelworkers Union will be honored.
The companies say Nippon's acquisition of US Steel will lead to the combination of “world-leading technologies and manufacturing capabilities” and will allow them to better serve their customers in the United States and around the world.
“NSC has a proven track record of acquiring, operating and investing in steel facilities globally, and we are confident that, like our strategy, this combination is truly the best fit for everyone,” said David Burritt, president and CEO of NSC. US Steel in part.
“We look forward to working closely with the US Steel team to bring together the best of our companies and move forward together as the 'Best Steel Manufacturer with World-Leading Capabilities,'” Nippon Steel Corporation President Eiji Hashimoto said in part.
This deal with Nippon has been unanimously approved by the board of directors of both companies and is expected to be completed in the second or third quarter of 2024. The deal still needs approval from US Steel shareholders.
Following the announcement of the deal, the United Steelworkers spoke out against the sale, saying they were “disappointed” and stating that it represents a “greedy” and “shortsighted” attitude.
“We remained open throughout this process to working with US Steel to keep this iconic American company domestically owned and operated, but instead they decided to put aside the concerns of their dedicated workforce and sell it to a foreign-owned company,” said the Steelworkers.
The steelworkers also claim that this agreement violates the terms of their collective bargaining agreement, in that the company must notify workers of a change in ownership or control.
Earlier this year, US Steel said it wasand had after rejecting an unsolicited offer from rival Cleveland-Cliffs worth just over $7 billion.
US Steel also received an offer forof industrial conglomerate Esmark in the weeks following Cleveland Cliffs' rejected offer.
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