The Briefing Room
General Category => Economy/Business => Topic started by: mountaineer on December 18, 2023, 01:32:32 pm
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Japan’s Nippon Steel to buy U.S. Steel in $14.9 billion deal
Published Mon, Dec 18 20236:07 AM EST Updated 8 Min Ago
Reuters via CNBC (https://www.cnbc.com/2023/12/18/japans-nippon-steel-plans-to-acquire-us-steel-for-7-billion.html)Japan’s Nippon Steel said on Monday it would buy U.S. Steel in a deal valued at $14.9 billion, helping it add significant capacity in a key market that is primed for a price hike.
U.S. Steel’s shares rose about 28% to $50.35 in premarket trading, but were still trading well below the offer price of $55. That represented a premium of 142% since the company announced a strategic review process on Aug. 11.
The all-cash offer represents an equity value of about $14.1 billion and the world’s No.4 steelmaker said it had secured financing commitments to fund the transaction. ...
Pittsburgh-based U.S. Steel’s shares had suffered after several quarters of falling revenue and profit, making it an attractive takeover target for rivals looking to add a maker of steel used by the automobile industry. ...
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Andrew Carnegie will roll over in his grave!
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Several steelmakers in the Ohio Valley have been purchased by Japanese companies and other foreign entities over the past few decades. End of an era.
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Several steelmakers in the Ohio Valley have been purchased by Japanese companies and other foreign entities over the past few decades. End of an era.
Another step forward in the economic subjugation of America.
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Japanese steel company purchasing Pittsburgh-based U.S. Steel in deal worth nearly $15 billion
By Mike Darnay
Updated on: December 18, 2023 / 7:33 AM EST / CBS Pittsburgh
PITTSBURGH (KDKA (https://www.cbsnews.com/pittsburgh/news/japanese-steel-company-purchasing-pittsburgh-based-u-s-steel-in-deal-worth-nearly-15-billion/)) -- The United States Steel Corporation is being purchased by the Nippon Steel Corporation, the largest steelmaker in Japan.
The companies announced the news of the purchase early Monday morning and say that it will be an all-cash transaction at a value of $55 per share, making the total deal worth nearly $15 billion, including Nippon acquiring U.S. Steel's debt.
As part of the agreement, U.S. Steel, which was founded in 1901 by Andrew Carnegie, J.P. Morgan, and Charles Schwab, will keep its iconic name and headquarters in Pittsburgh and all collective bargaining agreements with the United Steelworkers Union will be honored.
The companies say that Nippon acquiring U.S. Steel will lead to the combining of 'world-leading technologies and manufacturing capabilities' and that it will allow them to serve their customers better in the United States and around the world. ...
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And a show of hands of who didn't think that a federal government wrought with bat shit crazy environmental mandates wouldn't eventually cause industrial crumbling under the largess of bureacreacy and wasted resources for zero return.
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Will this pass the anti-Trust smell taste?
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Could be worse, could be the Chicoms.....no doubt the Biden regime will try to tank the sale so that the Chicoms could step in :shrug:
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Fetterman vows to block the sale.
https://twitter.com/SenFettermanPA/status/1736823944861110671
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:bkmk: We'll see what Fetterman does.
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Fetterman vows to block the sale.
https://twitter.com/SenFettermanPA/status/1736823944861110671
Not sure what's gotten into Fetterman lately, but I actually agree with this. Considering it's importance to National defense, U.S. Steel should be protected from foreign ownership and treated as a National asset. Steel companies just can't be rebuilt overnight, and once they're gone, they're usually gone for good.
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J.D. Vance
@JDVance1
A critical piece of American industry was sold to a foreign bidder. It would be nice if the Biden administration did anything besides sit on its hands.
https://twitter.com/wsmartin218/status/1736798598296481822
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What are they buying though? Will the plants/jobs stay here in the US?
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Sale of U.S. Steel might not be a final chapter amid a growing presence in Japan and a pivot to tech
Despite 40 years of economic decline, the steel industry could be on the verge of a resurgence
Evan Robinson-Johnson
Pittsburgh Post-Gazette
Dec. 24, 2023Larry Mitko worked 34 years of his life at Jones & Laughlin Steel Corp. in Aliquippa, where mills stretched for miles and company carpenters built company homes. ...
Nippon Steel Corp. agreed to honor all existing labor agreements in its winning bid for U.S. Steel — a $14.9 billion cash offer and 142% premium that analysts said the Japanese steelmaker wouldn’t have paid if it didn’t want all of the company’s assets.
But a few miles from its glimmering Downtown offices, U.S. Steel’s three remaining operations in Allegheny County are dated and dirty. They would cost billions to modernize, the company has said. Based on the history that guided his own life, Mr. Mitko doesn’t expect Nippon to make the investment. ...
But for the past 40 years, the local story of steel has been one of closures and layoffs. The region’s only possible new mill is being built by a Brooklyn firm with Chinese roots. It just so happens to be slated for the same J&L site where Mr. Mitko worked. ...
Companies themselves are also pivoting. In 2019, U.S. Steel embraced a new way of making steel that uses electricity and recycled scrap rather than traditional blast furnaces. The change came at a fortuitous time as the federal government embraced tariffs and poured billions into domestic manufacturing efforts to rebuke China and chase climate targets.
Many observers expect Nippon to help the U.S. in that effort, though union leaders and politicians swiftly and strongly opposed the idea of a foreign takeover. ...
Read entire article at Post-Gazette (https://www.post-gazette.com/business/powersource/2023/12/24/us-steel-nippon-mon-valley-steel-industry-ltv/stories/202312240058)
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Not to worry. They will be more than happy to sell it back to us in the form of finished products. </S>
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Will this pass the anti-Trust smell taste?
@DefiantMassRINO
Of course it will!
After the appropriate bribes and "gifts" to US politicians have been placed,of course.
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Could be worse, could be the Chicoms.....no doubt the Biden regime will try to tank the sale so that the Chicoms could step in :shrug:
@GtHawk
I would almost be willing to bet money that the bidding has already began.
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J.D. Vance
@JDVance1
A critical piece of American industry was sold to a foreign bidder. It would be nice if the Biden administration did anything besides sit on its hands.
https://twitter.com/wsmartin218/status/1736798598296481822
@mountaineer
They are.
They are taking "their" cut of the sale.
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Treasury Secretary Yellen discusses sale of U.S. Steel to Japanese company
By Jon Delano
February 13, 2024 / 6:46 PM EST / CBS Pittsburgh KDKA (https://www.cbsnews.com/pittsburgh/news/us-steel-sale-japanese-company-treasury-secretary-janet-yellen/)The proposed acquisition of U.S. Steel by a Japanese steelmaker puts the treasury secretary in the middle of a controversial deal.
Local elected officials have called on Treasury Secretary Janet Yellen to stop the transaction. In an exclusive interview, KDKA-TV political editor Jon Delano pressed Yellen on what she was going to do. ...
Delano: "What would happen, what could happen should you examine this deal and find national security issues?"
Yellen: "Well sometimes a deal is simply banned outright, and sometimes when the national security issues can be addressed, sometimes an arrangement can be put in place."
Yellen gave no indication of what CFIUS was doing or considering at this moment, so KDKA-TV tried a different question.
Delano: "Do you think that it's critical to American security to have a domestic steel industry that is healthy and strong in the United States?"
Yellen: "Well President Biden and I believe that a strong manufacturing sector is critical for America's economy and to create good jobs." ...
*****rollingeyes*****