Nippon Steel Corporation (NSC) has agreed to acquire United States Steel Corporation (U. S. Steel) in an all-cash transaction at US$55.00/share, representing an equity value of approximately US$14.1 billion plus the assumption of debt, for a total enterprise value of US$14.9 billion.

Due to NSC's acquisition of U. S. Steel, the anticipated total annual crude steel capacity is set to reach 86 million tonnes, marking significant progress toward NSC's strategic objective of achieving a global crude steel capacity of 100 million tonnes annually. This transaction leverages advanced technologies from both NSC and U. S. Steel to drive innovation and supply premium steel products, such as electrical steel and automotive flat steel, to a global customer base. NSC is actively advancing three groundbreaking technologies to move closer to its target of carbon neutrality by 2050. These include incorporating hydrogen injection technology into blast furnaces, producing high-grade steel in large electric arc furnaces, and utilizing hydrogen in the direct iron reduction process. U. S. Steel shares a similar commitment to reducing its carbon footprint, striving to minimize energy usage in existing operations, integrating electric arc furnace capabilities, and constructing a modern mini mill in Arkansas. Following the completion of the transaction, U. S. Steel will maintain its iconic name, brand, and headquarters in Pittsburgh, PA. NSC is dedicated to preserving strong relationships with U. S. Steel's suppliers, customers, local communities, and supporting individuals, pledging to be a positive contributor to these communities.

The transaction is anticipated to conclude in Q2 or Q3 of 2024. NSC has enlisted Citi as its financial advisor, with legal counsel provided by Ropes & Gray LLP. U. S. Steel is advised by financial advisors Barclays Capital Inc., Goldman Sachs & Co. LLC, and Evercore, along with legal advisors Milbank LLP and Wachtell, Lipton, Rosen & Katz.