U.S. Steel, a major corporation with a storied history, has been purchased by Japan’s largest steelmaker as part of a multibillion-dollar acquisition.
Nippon Steel and U.S. Steel announced the deal Monday morning. The price tag for the acquisition is more than $14 billion. The deal values U.S. Steel at $55 per share, which is much more than shares of the company were trading at just a few days ago.
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After the news of the sale broke on Monday, futures of U.S. Steel lurched upward by about 27%.
U.S. Steel was formed by J.P. Morgan, Andrew Carnegie, Charles Schwab, and others in 1901 and was a worldwide corporate juggernaut throughout much of modern history. Notably, despite the purchase, U.S. Steel will keep its name and headquarters.
In a news release, U.S. Steel said the deal “brings together two storied companies with rich histories of providing excellent products and services and contributing to the development of society.”
In a statement, NSC President Eiji Hashimoto said the acquisition would help serve customers worldwide and mentioned the firm’s corporate commitment to being more environmentally friendly through the “decarbonization of steel.”
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“NSC has long admired U. S. Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights,” Hashimoto said. “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.”
The combination of the two companies will make Nippon Steel the world’s second-largest steel producer, behind a state-owned company in China, according to the Wall Street Journal.
