On Decembre 18, 2023, Nippon Steel Corporation (NSC), Japan’s largest steelmaker, acquired United States Steel Corporation (U.S. Steel) in an all-cash transaction valued at $20.12 billion (US$14.9 billion), including debt. NSC offered $74.25 (US$55.00) per share, a 40% premium on U.S. Steel’s closing price on December 15, 2023, bringing the equity value to $19.04 billion (US$14.1 billion). The boards of both companies unanimously approved the transaction.

The acquisition aimed to enhance NSC's manufacturing and technology capabilities, expand its global footprint, and increase its annual crude steel capacity to 86 million tonnes. This move aligned with NSC’s strategic goal of achieving 100 million tonnes annually, with a strong emphasis on decarbonization and sustainable practices.

NSC President Eiji Hashimoto highlighted the merger’s potential to combine world-leading technologies, while U.S. Steel’s CEO David B. Burritt noted the strategic benefits and shared sustainability goals.

Both NSC and U.S. Steel conduct business in Canada. NSC supplies steel products to various Canadian industries such as automotive, construction, and energy. U.S. Steel, through its former subsidiary U.S. Steel Canada, continues to supply products and services to Canadian customers.

The transaction was set to close in the second or third quarter of 2024, pending regulatory approvals and shareholder consent. Financial advisors for NSC were Citi, with Ropes & Gray LLP as legal advisors. U.S. Steel’s financial advisors included Barclays Capital Inc., Goldman Sachs & Co. LLC, and Evercore, with legal advice from Milbank LLP and Wachtell, Lipton, Rosen & Katz.