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In a landmark $14.1 billion merger, US Steel is set to combine forces with Japan's Nippon Steel, in a move that promises to reshape the steel industry. This deal is a strategic pivot for US Steel, an iconic American brand that has struggled to maintain its foothold amid technological advancements and fierce international competition. Nippon Steel's strong safety record and union collaboration make this an opportune alliance for US Steel, which has seen a significant decline from its heyday. The acquisition is set against a backdrop of a rapidly evolving industry, with environmental sustainability becoming a pressing issue. As steelmakers worldwide are called upon to reduce their carbon footprint, this merger could provide the impetus for innovation and greener practices. Despite some apprehension from the United Steelworkers union, the preservation of union contracts offers stability for employees. US Steel will retain its heritage name and Pittsburgh roots, honoring a legacy that dates back to its 1901 inception as an industry titan. This merger is more than a financial transaction; it's a strategic realignment that could signal a rebirth for US Steel. As the industry adapts to new realities, collaborations like this could be pivotal in securing a more sustainable, competitive future. I welcome your thoughts on this historic merger. How do you think it will impact the industry and the future of steelmaking? Share your views in the comments below. #USSteel #NipponSteel #IndustryNews #SteelMerger #Sustainability Original article: https://lnkd.in/e-zq4zRF

US Steel Corp. agreed to be purchased by Nippon Steel yesterday in an all-cash $14.9B deal, marking a significant move for the Japanese steel giant in the US. The acquisition is set at $55 per share and will assume US Steel’s debt. The merger, if approved, would retain the US headquarters in Pittsburgh.   Founded in 1901 by Andrew Carnegie and JP Morgan through the merger of several steel companies, US Steel was once the world's largest company and the first to be valued at over $1B. It fueled America's construction boom, including iconic buildings like Chicago's Willis Tower and the UN building in New York City, but later faced  decline.   The acquisition would position Nippon as the world’s third-largest steelmaker, after China Baowu Group and Luxembourg-based ArcelorMittal. US Steel rejected a lower price bid earlier this year by rival Cleveland-Cliffs that would have purchased the company at $35 per share.   The merger is pending shareholder and regulatory approval and will likely face opposition from US Congress and the United Steelworkers union, who have cited contractual demands for new labor agreements before the sale is final.

US Steel has been bought by Nippon Steel in a $14.1 billion deal. In a statement on Monday, the Japanese group said it plans to buy #USSteel in an all-cash transaction at $55 per share, which represents a 40% premium to the US steelmaker’s closing share price on Friday. It is the Japanese group’s biggest ever acquisition and part of a growing wave of Japanese overseas acquisitions, which has accelerated despite the weakness of the yen. US Steel had been considering strategic options from earlier this year and in August it rejected a $7.32 billion bid from rival Cleveland-Cliffs.  The deal is expected to close in the second or third quarter of 2024. US #Steel president and chief executive Officer David Burritt, said: "This transaction realizes the tremendous value today in our company and is the result of our Board of Directors’ comprehensive and thorough strategic alternatives process." More at #Proactive #ProactiveInvestors http://ow.ly/GFxo10561fm

𝗨.𝗦. 𝗦𝘁𝗲𝗲𝗹 𝗮𝗻𝗱 𝗡𝗶𝗽𝗽𝗼𝗻 𝗦𝘁𝗲𝗲𝗹 𝗺𝗲𝗿𝗴𝗲𝗿 𝗿𝗲𝗰𝗲𝗶𝘃𝗲𝘀 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗰𝗹𝗲𝗮𝗿𝗮𝗻𝗰𝗲, 𝗮𝘄𝗮𝗶𝘁𝘀 𝗨.𝗦. 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻 The deal, announced last December, received the green light from regulators in the #European Union, #Mexico, #Serbia, #Slovakia, #Türkiye, and the #UnitedKingdom. However, the merger is still pending approval in the United States, where it faces significant hurdles including scrutiny from the Department of Justice and political opposition from President #JoeBiden, who favors keeping U.S. Steel under American ownership. The merger has stirred concerns among stakeholders, particularly the United Steelworkers union, which fears potential job losses. In response, Nippon Steel has committed to honoring existing union agreements and plans to relocate its U.S. headquarters to Pittsburgh, the current base of U.S. Steel. The companies remain optimistic about finalizing the deal in the second half of this year, buoyed by support from #USSteel's shareholders who endorsed the merger in April, aiming to help #Nippon Steel achieve its goal of expanding its global crude steel capacity to 100 million metric tons. https://lnkd.in/dpbaqF3Y

The potential acquisition of U.S. Steel by Nippon Steel illustrates the complex interplay between global business strategy and domestic political concerns. While Nippon Steel saw this as a strategic move to enhance its global standing, the backlash in the U.S. highlights the challenges of foreign investments in politically sensitive industries. The failure to engage key stakeholders, such as the United Steelworkers union, early in the process was a critical oversight. This situation underscores the importance of considering not just the economic, but also the political and social implications of cross-border mergers and acquisitions.

U.S. Steel Shareholders Approve $14.9 Billion Buyout by Nippon Steel Despite Political Opposition U.S. Steel shareholders have given the green light to Nippon Steel's proposed acquisition, moving the $14.9 billion deal one step closer to reality. Despite some political pushback, over 98% of shareholders voted in favor of the acquisition, which will see Nippon Steel pay $55 per share—a significant premium from when the deal was first announced. However, the deal hasn't been without controversy. Some U.S. lawmakers have raised national security concerns, and there's uncertainty about regulatory approval. U.S. Steel's shares closed below Nippon Steel's offer, reflecting this uncertainty. Criticism has also come from the United Steelworkers (USW) labor union, concerned about potential job losses. Regulators, including the Committee on Foreign Investment in the United States (CFIUS) and the U.S. Justice Department, are scrutinizing the deal for antitrust issues. Despite the challenges, Nippon Steel remains confident in the acquisition's benefits. They've pledged no job cuts, intend to honor agreements with the union, and plan to move their U.S. headquarters to Pittsburgh. Nippon Steel expressed confidence in the acquisition's ability to protect and grow U.S. Steel, benefiting stakeholders, the American steel industry, and the country as a whole. The deal is expected to close in the second or third quarter of this year. ~ Source - Reuters #Nipponsteel #Buyout

US Steel: A Legacy Transformed. The acquisition by Nippon Steel marks a significant chapter in the history of this iconic 122-year-old American company. From its historic rise to facing new challenges, the steel industry is evolving, and US Steel is part of that transformation. Swipe to know more #us #steelindustry #acquisition #nipponsteel #evolving #transformation #challenges #japan #industrytrends #news #manufacturingprocess #EMR #markettrends #claight #expertmarketresearch

US Steel Corp. agreed to be purchased by Nippon Steel yesterday in an all-cash $14.9B deal, marking a significant move for the Japanese steel giant in the US. The acquisition is set at $55 per share and will assume US Steel’s debt. The merger, if approved, would retain the US headquarters in Pittsburgh. Founded in 1901 by Andrew Carnegie, Elbert Gary, Charles Schwab, and JP Morgan through the merger of several steel companies (see history), US Steel was once the world's largest company and the first to be valued at over $1B. It fueled America's construction boom, including iconic buildings like Chicago's Willis Tower and the UN building in New York City, but later faced industrial decline. The acquisition would position Nippon as the world’s third-largest steelmaker, after China Baowu Group and Luxembourg-based ArcelorMittal. US Steel rejected a bid earlier this year by rival Cleveland-Cliffs that would have purchased the company at $35 per share. The merger is pending shareholder and regulatory approval and will likely face opposition from the United Steelworkers union, who have cited contractual demands for new labor agreements before the sale is final.

Statement from Nippon Steel re US Steel #merger #cfius Our transaction delivers clear benefits to U. S. Steel, union workers, the broader American steel industry, and American national security. Through increased financial investment and the contribution of our advanced technologies to U. S. Steel, Nippon Steel will advance American priorities by driving greater quality and competitiveness for customers in the critical industries that rely on American steel while strengthening American supply chains and economic defenses against China. No other U.S. steel company on its own can meet this challenge while also meeting antitrust requirements. Our aim is to bolster and grow U. S. Steel in the U.S. market in a way that prioritizes its talented employees, and we have provided significant commitments to the USW in our continued efforts to reach a mutually agreeable resolution. These include job security, pension security, capital investment, technology sharing, financial reporting, and the ability to enforce contractual obligations post-closing. Nippon Steel is the right partner to ensure that U. S. Steel is successful for generations to come as an iconic American company. We are progressing through the regulatory review, including CFIUS, while trusting the rule-of-law, objectivity, and due process we expect from the U.S. Government. We are determined to see this through and complete the transaction.

Largest Acquisition To Date. The largest Acquisition deal to date up to a sum of $14.9bn is underway as Nippon Steel agrees to said sum for US Steel. With a purchase of $55 per share (40% premium to US Steel's closing on Friday but more than 140% higher than where the stock trading before its rival Cleveland Cliff offered $7.3bn for US Steel in August.) As of late such acquisitions has been occuring more often as a result of shrinking domestic markets for Nippon Steel and geopolitical constraints Chinese companies face in buying US corporations.