Japan’s Nippon Steel said on Monday it would buy U.S. Steel in a deal valued at $14.9 billion including debt, months after the steelmaker put itself up for sale.
The per-share offer of $55 represents a premium of about 40% to U.S. Steel’s Friday’s close and 142% compared to the stock’s closing price before the company announced a strategic review process on Aug. 11.
Nippon, the world’s No.4 steelmaker, sees the U.S. as a growth market that can help to offset declining demand in Japan, the Nikkei daily, which earlier reported the deal, said.
Nippon has secured financing commitments for the deal and expects it will enable the company to move toward 100 million tonnes of global crude steel capacity.
All of U. S. Steel’s commitments with its employees, including all collective bargaining agreements in place with its unions, will be honored, Nippon said.