U.S. Steel will be acquired by the Japanese conglomerate Nippon Steel Corporation, under a $14.9 billion-dollar deal announced early this morning.
NSC will pay $55 per share for the Pittsburgh-based company.
U.S. Steel CEO David Burritt said in a statement the deal will help NSC meet the growing demand for high-grade steel in the U.S., "ensuring a competitive, domestic steel industry, while strengthening our presence globally. Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals.”
According to a press release, U.S. Steel will "retain its iconic name and headquarters in Pittsburgh."
NSC said it would honor agreements with the U.S. Steelworkers Union: "All of U. S. Steel’s commitments with its employees, including all collective bargaining agreements in place with its unions, will be honored and NSC is committed to maintaining these relationships uninterrupted."
The sale is expected to close in the second or third quarter of next year and is still subject to approval by U.S. Steel shareholders.
In August, U.S. Steel rejected a $7.3 billion buyout offer from Cleveland Cliffs and said it was reviewing “strategic alternatives” after receiving several unsolicited offers.