© Reuters. U.S. Steel (X) rises 5% on report it will be acquired by Nippon Steel
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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.
Source: Investing.com
