Nippon Steel JP:
5401,
said Monday it’s buying U.S. Steel
X,
for $14.1 billion, or $55 per share, which is a 40% premium.
Nippon Steel said it will honor all collective bargaining agreements with United Steelworkers Union and that both boards have approved the deal.
Nippon Steel said it will be well-positioned to capitalize on the growing demand for high-grade steel, automotive and electrical steel, and furnish excellent products and services.
U.S. Steel’s stock is rallying by 27% to $49.94 in premarket trading.
U.S. Steel will remain with its headquarters in Pittsburgh, along with retaining its “iconic name.”
The companies said the deal will create “significant value” for both companies.
The deal came after U. S. Steel launched a strategic alternatives process.
U.S. Steel said in August it would examine options for its business after it rejected a takeover offer from Cleveland-Cliffs
CLF,
