US Steel offers $750 million for National Steel takeover

US Steel offers $750 million for National Steel takeover

Following the International Steel Groups $1.5 billion offer to take over the bankrupt Bethlehem Steel, the second step for consolidation in the US steel industry came in with the offer made by the largest US steelmaker US Steel Corp. to acquire the bankrupt producer National Steel, as per announcement made on Thursday, January 9. The purchase will be made against $750 million in cash and stock. This will include up to $ 100 million in US Steel common stock and the balance in cash. In case of an agreement, such takeover will increase the annual raw steel production capability of US Steel to about 25 million which will carry the company to the position of 5th largest producer in the world from being the 11th. Total production will be increased by 40% and will provide a cost saving of about $170 million over two years.