I remember reading some rumblings about being bought but the articles at the time made it seem like US Steel wasn’t that interested. Just saw today they agreed to be bought out by Nippon for ~$15 billion.
I wonder how the USW union is going to handle this.
Article as follows in case the link gets broken or whatever: “US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal.
The deal marks the latest step in a gradual decline for the iconic 122-year old company, which was once the largest company on the planet. It was one of the first major conglomerates and a symbol of American industrial might.
But it is no longer even the largest US steelmaker, having been surpassed by Nucor Steel years ago.
Under terms of the deal, US Steel’s operations will retain its name and will continue to have a headquarters in Pittsburgh. But the deal could still stir opposition. Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel. The US Steel board rejected that offer and started considering other bids. The union did not immediately respond to a request for comment early Monday.
US Steel’s statement said that Nippon Steel has a strong track record of safety in the workplace and working collaboratively with unions, that all union contracts will remain in place and that Nippon Steel is committed to maintaining these relationships uninterrupted.
US Steel was created through a merger when a group led by J.P. Morgan and Charles Schwab, two of the world’s leading financiers of the time, bought the steel company owned by Andrew Carnegie and combined it with their holdings in its rival Federal Steel company.
Monday’s all-cash offer represents a 40% premium on the closing price for US Steel shares from Friday. Shares of
US Steel jumped 28% in premarket trading. Shares of Nippon were down 1% in trading in Japan, which closed before the deal was announced.”