Japan’s Nippon Steel buys US Steel for $14.9 bln

Japanese steelmaker Nippon Steel Corporation will acquire US Steel for $14.9 billion in the second or third quarter of 2024, the company said on Monday December 18

US Steel has been in operation for 122 years.

The purchase value is an all-cash buy of $14.1 billion plus the assumption of $800 million in debt. The acquisition will create one of the world’s largest steelmakers, producing 86 million tonnes per year – with a goal of 100 million tpy.

In 2022, the total steel output from the US was about 85.9 million tonnes, according to a report by the American Iron and Steel Institute.

Nippon said that the acquisition expands its already sizable geographic footprint – Japan, the ASEAN region and India – into the US. The purchase also enhances its “world-leading manufacturing and technology capabilities,” the company said in a press release.

We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel,
Eiji Hashimoto, president of Nippon Steel

US Steel chief executive officer David Burritt said in the release that the acquisition is “Best for All,” a spin on the company’s combined EAF/blast furnace “Best of Both” strategy.

“Today’s announcement also benefits the United States – ensuring a competitive, domestic steel industry, while strengthening our presence globally,” Burritt said.

“Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”

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