The Japanese company Nippon Steel will buy US Steel for 14.1 billion dollars

Japan's Nippon Steel has agreed to buy US Steel Corp for $14.1 billion, the companies said Monday, months after the steelmaker rejected a bid from its main U.S. rival.
Japan's top steelmaker will acquire US Steel in an all-cash deal for $55 a share, a 40% premium to its Dec. 15 closing price, representing an equity value of about $14.1 billion, se the companies said in a statement.
Nippon will also assume the debt of the American company, and the total value of the transaction will reach 14.9 billion dollars.
US Steel began a strategic review in August after receiving several unsolicited offers for a partial or full takeover.
It rejected the offer of its main American competitor Cleveland-Cliffs, which valued the merger at about 10 billion dollars.
The USW steelworkers union has indicated it supports the deal proposed by Cleveland-Cliffs.
The acquisition will significantly expand Nippon's current US manufacturing.
"As a result of NSC's acquisition of US Steel, expected total annual crude steel production capacity will reach 86 million tons - accelerating progress toward NSC's strategic goal of 100 million tons of global crude steel production capacity per year ", the statement said.
"We are excited that this transaction brings together two companies with world-leading technology and manufacturing capabilities, demonstrating our mission to serve customers around the world as well as our commitment to building a greener society through the decarbonization of steel," said Nippon Steel's president Eiji Hashimoto.
According to analysts and industry insiders, US Steel's appeal stems from the fact that it is about to complete a costly investment plan that includes installing electric arc furnaces instead of coal-fired blast furnaces to reduce its carbon footprint.
The two boards of directors unanimously approved the deal, which is subject to US Steel shareholder approval, the companies said. /BGNES