U.S. Steel agreed on Monday to sell itself to Nippon Steel for $14.1 billion, capping months of speculation about the fate of the American industrial heavyweight.
U.S. Steel, which was formed more than a century ago by J. Pierpont Morgan from a part of Andrew Carnegie’s industrial empire, has been weighing several takeover bids, including by domestic rival, Cleveland-Cliffs. A little-known steel producer, Esmark, made an even larger bid — that was light on details — before withdrawing days later.
In the end, U.S. Steel chose an offer by one of its biggest global competitors that was worth significantly more than Cleveland-Cliffs’ initial offer: Nippon Steel will pay $55 a share in cash, compared with the $35 a share cash-and-stock bid that Cleveland-Cliffs made in August.
“U.S. Steel and NSC create a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs,” David B. Burritt, U.S. Steel’s chief executive, said in a statement.
This is a developing story. Check back for updates.