2023-12-18 06:14:38 ET
- Nippon Steel Corporation ( OTCPK:NISTF ), Japan’s largest steelmaker to acquire United States Steel ( NYSE: X ) in an all-cash transaction at $55.00 per share, represents a 40% premium to X closing stock price of $39.33 on December 15.
- The $55.00 translates into an equity value of ~$14.1B and the assumption of debt, for a total enterprise value of $14.9B.
- The transaction has been approved by both the boards.
- NSC’s acquisition of U. S. Steel will expand footprint to other geographic areas in which the company can better serve all of its customers.
- The acquisition will boost production, thus now expecting total annual crude steel capacity of 86 million tonnes.
- The transaction is expected to close in 2Q23 or 3Q23.
- NSC plans to fund the transaction through proceeds mainly from borrowings from certain Japanese banks and has already secured financing commitments.
- X +5.2% premarket to $41.39
- Source: Press Release
For further details see:
Nippon Steel to acquire U. S. Steel for $55/share for total enterprise value of $14.9B