Japan's largest steelmaker Nippon Steel Corporation (NSC) will acquire United States Steel Corporation in an all-cash deal of $55.00 per share, representing an equity value of roughly $14.1 billion, plus the assumption of debt bringing the total enterprise value at $14.9 billion, the American steelmaker announced on Monday.
The transaction has received unanimous approval from the board of directors of both companies."The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel's existing union contracts," NSC President Eiji Hashimoto said.
Several companies offered to buy the Pennsylvania-based company this year, but the corporation rejected a $7.3 billion deal from Cleveland-Cliffs Inc. Esmark also launched its bid to purchase US Steel for $35 per share, with other buyout offers surpassing $40 apiece.
Shares of the American steelmaker rose 1.88% during the premarket hours, selling at $40.05 apiece.
