Search
EN Down
Language
Hi, user_no_name
Live Chat

US Steel stock

 

U.S. Steel announces takeover by Japan’s Nippon Steel, stock up over 20%

The United States Steel Corporation saw its shares surge on Monday following the company's announcement of its acquisition by Nippon Steel.

Japan's leading steel manufacturer is set to purchase U.S. Steel at $55 per share in cash, presenting a substantial 40% premium to the stock's value on December 15, in addition to assuming debt, resulting in an overall enterprise value of $14.9 billion.

The offer also stands at a remarkable 50% higher than the mid-August cash and stock bid from Cleveland-Cliffs, which played a role in triggering U.S. Steel's strategic review process. Cleveland-Cliffs proposed $17.50 per share and 1.023 shares of its stock for every U.S. Steel share, valuing the deal at approximately $36.63 based on recent share prices.

U.S. Steel stocks surged by around 26% in Monday's trading, closing at $49.63, while Nippon Steel shares experienced a 1.1% decline in Tokyo.

As of Thursday, U.S. Steel shares maintained those gains, and were up 23% over a 5-day period. Nippon Steel stock dipped slightly, falling by 0.41% over the same period. Nippon is a constituent of Japan’s Nikkei 225 index, which was up 1.16% on the week at the time of writing.

 

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
SunPower
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
Yandex
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Evraz
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
TUI AG (LSE)
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
Ozon
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Avacta
Naspers
Bristol Myers
Samsung
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Hanesbrands
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

 

US Steel acquisition: United Steelworkers union says it wasn’t consulted prior to Nippon buyout

Pending regulatory approval, the deal is anticipated to conclude in the second or third quarter of the following year. Notably, the agreement includes a commitment from Nippon Steel to maintain U.S. Steel’s relationships with the United Steelworkers union.

U.S. Steel CEO David B. Burritt said in a statement: 

“NSC has a proven track record of acquiring, operating, and investing in steel mill facilities globally—and we are confident that, like our strategy, this combination is truly Best for All.”

The proposed combination is likely to face opposition, particularly from the United Steelworkers, the representative body for numerous U.S. Steel employees. The organization has already expressed its dissatisfaction with the deal. Union President David McCall in a news release: 

“To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long. Neither U.S. Steel nor Nippon reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires U.S. Steel to notify us of a change in control or business conditions.”

This isn't the first time Japanese steelmakers have been with involved with American steel companies, or with U.S. Steel. For instance, NKK Corp. acquired a large stake in National Steel during the 1980s. National Steel subsequently filed for bankruptcy in 2002, and U.S. Steel acquired its assets for about $1 billion, incorporating them into its operations in the Midwest.

Nippon Steel, positioned as a top-five global steel producer, is approximately three to four times larger than U.S. Steel in terms of both revenue and production volume. Once the largest steelmaker in the world, U.S. Steel, established in 1901 by Andrew Carnegie and John Pierpont Morgan, has stood as an iconic symbol of American industry. In August, the company announced its exploration of strategic alternatives after receiving multiple unsolicited proposals.

The Nippon deal values U.S. Steel stock at approximately $12.3 billion, with the entire company, including debt, valued at about $14.5 billion. This equates to roughly 6.7 times the average earnings before interest, taxes, depreciation, and amortization (EBITDA) generated in recent years, a standard metric for evaluating commodity-oriented businesses with earnings that fluctuate in tandem with commodity prices.

Comparatively, Cleveland-Cliffs and Nucor both trade at around 7.5 times their average EBITDA over the past few years.

At the time of writing on Thursday, U.S. Steel shares were trading at $48 in premarket on the NYSE and were up 23.06% on the week. The company’s stock has soared by close to 91%, far exceeding the growth of the benchmark S&P 500 index and the Dow Jones Industrial Average, which rose by 22.4% and 11.9% year-to-date respectively.

When considering shares for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wall Street bets on blowout quarterly Nvidia earnings report

Monday, 20 May 2024

Indices

Wall Street bets on stellar Nvidia earnings on Wednesday

Shares, yields, oil broadly higher as copper, gold price hit new highs

Sunday, 19 May 2024

Indices

Stocks, yields, oil climb as copper and gold price hit highs

Nvidia earnings report comes amid resurgence in meme stocks

Thursday, 16 May 2024

Indices

Week ahead: Nvidia earnings come amid return of meme stock mania

Dow Jones index touches 40,000 but indices dip

Thursday, 16 May 2024

Indices

Dow Jones index touches 40,000 but stocks ease back

Live Chat