Japan-based Nippon Steel Corporation has announced that it has decided to acquire steelmaker United States Steel Corporation (US Steel), through its subsidiary Nippon Steel North America for $14.1 billion in cash. As a result of the transaction, which is subject to approvals, US Steel will be a wholly-owned subsidiary of Nippon Steel Corporation.
The acquisition of US Steel will enable Nippon Steel to expand its current production in the US, adding to its primary geographies of Japan, the ASEAN region and India.
US Steel has an annual production capacity of approximately 20 million mt of crude steel and, with the acquisition, Nippon Steel is expected to reach a total annual production capacity of 86 million mt, accelerating progress towards its strategic goal of an annual 100 million mt of global crude steel capacity.
The parties share a common goal of achieving carbon neutrality by 2050. In addition, US Steel’s plans for Big River 2, construction of which is expected to be completed in 2024, will contribute to the target of achieving carbon neutrality.