CA - United States Steel Offers Investors A Phenomenal Opportunity On Merger Worries
2024-03-21 11:10:33 ET
Summary
- United States Steel Corporation shares have declined 22.6% from their 52-week high amid scrutiny over its acquisition by Nippon Steel.
- Antitrust concerns and a national security review pose challenges to the completion of the deal.
- Despite potential risks, I believe there is a limited downside and see United States Steel stock as a strong buy due to its attractive valuation.
The last few weeks have been very difficult for shareholders of steel manufacturer United States Steel Corporation ( X ). After seeing shares peak at $50.20 earlier in the year as optimism swirled around the prospect of the company being able to complete its transaction with Nippon Steel Corporation ( NISTF , NPSCY ) whereby Nippon has been expected to pay $55 per unit, or $14.1 billion on an equity value basis, to absorb the American steel behemoth, shares have since declined. As of this writing, they are trading at $38.87. That marks a 22.6% decline from their 52-week high....
United States Steel Offers Investors A Phenomenal Opportunity On Merger Worries