Saturday, December 23, 2023

U.S. On Sale: $15 BILLION Cash Deal With Japan To Sell America's 122-Old U.S. Steel Company.

 Yes, the news is true. The U.S. Steel Corporation, a 122-year-old company that played a significant role in the industrialization of the United States, is being acquired by Nippon Steel, the largest steelmaker in Japan. The all-cash deal is valued at approximately $14.1 billion, and when including the assumption of debt, the transaction is worth about $14.9 billion

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The sale of U.S. Steel was driven by several factors. Over the years, U.S. Steel's output and stock market value have fallen below other American steel companies
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 The company also faced a bidding war among rivals, with Nippon Steel's offer notably higher than the $35 per share offered by Cleveland-Cliffs in August, which was rejected by U.S. Steel
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The acquisition by Nippon Steel is expected to bring several benefits. It will combine the advanced production technologies of both companies, leading to cost-effective operations, energy savings, and recycling
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 The deal will also strengthen the ability to address the growing demand for high-grade steel in the U.S. and globally
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 Furthermore, it will expand Nippon's production in the U.S. and add to its positions in Japan, India, and the ASEAN region
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However, the sale has faced criticism, particularly from the United Steelworkers union, which expressed disappointment and described the sale as a "greedy" and "shortsighted" attitude
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 Despite this, the deal has been approved by the Board of Directors at both companies and still needs approval from U.S. Steel shareholders
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 The deal is expected to close in the second or third quarter of the 2024 calendar year
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It's important to note that the acquisition is subject to regulatory scrutiny and could potentially face delays due to political opposition
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 Despite these potential hurdles, some analysts believe that the sale could be beneficial for American manufacturing by keeping the steel market more competitive domestically
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