Posted on 12/18/2023 6:19:23 PM PST by bitt
Nippon Steel Corporation (NSC), Japan’s top steelmaker, is set to acquire United States Steel Corporation (“U. S. Steel”) in a cash transaction valued at nearly $15 billion. This acquisition raises questions about the future of American industry and labor amid larger national security conversations.
U.S. Steel is a steel producer that supplies products to many industries, including automotive, construction, appliances, energy, containers, and packaging. It was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania. As of 2022, U.S. Steel is the 27th largest steelmaker in the world, producing about 14.5 million tonnes of liquid steel annually.
The definitive agreement, which has already been approved by both companies’ boards of directors, will see NSC pay $55.00 per U.S Steel share.
This price is a 40% premium over the closing stock price as of December 15, 2023, reflecting a 14.1 billion equity value and the assumption of debt, summing up to a total enterprise value of $14.9 billion.
“NSC’s acquisition of U. S. Steel will enhance its world-leading manufacturing and technology capabilities and enable it to expand the geographic areas in which NSC can better serve all of its stakeholders, including customers and society at large. The transaction will further diversify NSC’s global footprint by significantly expanding its current production in the United States, adding to its primary geographies of Japan, ASEAN, and India. As a result of NSC’s acquisition of U. S. Steel, its expected total annual crude steel capacity will reach 86 million tonnes – accelerating progress towards NSC’s strategic goal of 100 million tonnes of global crude steel capacity annually,” according to the news release.
(Excerpt) Read more at thegatewaypundit.com ...
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The Japs will produce better steel, be more profitable and make a better work environment for the workers.Let me tell ya, the Japs know how to make steel with the best quality.
Don’t have problem with this. Japanese companies have many factories in the US producing quality goods. It isn’t the 80’s anymore.
This has to be a huge positive for USS. Nippon would not pay that premium, in cash, for something they didn’t want to help develop and grow.
The folks at the plant levels will love this......the corporate suits not so much.
Check out Nucor-Yamato...
One of the largest steel manufacturers in America...
I see the free traitor, GOPe contingent is trying to chatter up this economic pillaging as a win. @#%$ing cucks.
Re: 8 - now, now potty mouth.
And if relations with Japan were to deteriorate???
Is USS a union shop?
This looks like a very good and wise deal for Japan. I don’t see a whole lot of downside for the USA or the world at the moment.
Japan is far more concerned with American security than the current regime in Washington, DC
We bombed the Japanese steel industry into the Stone Age during WWII. Then we helped rebuild it. The unions in the US prevented new technology from being implemented and US steel costs increased at about the same time the union started bitching about Japan “dumping” steel in the US at “less than fair prices”. So, the politicians got in the act with import quotas and tariffs. As a result, US consumers paid significantly higher prices for everything from toasters to automobiles just to support the United Steel Workers. Japan was producing steel with 1970’s technology and we were limping along with the same 1890’s plants.
Well, it looks like we’ve come full circle and now the politicians are starting to see the impact of those stupid quotas and tariffs.
“And if relations with Japan were to deteriorate???”
Do you think relations can deteriorate so much such that Japan will treat us worse than how our government is treating the Jan 6th protesters?
Government and Unions are to blame for this sell off.
Nationalize steel production?
“Well, it looks like we’ve come full circle and now the politicians are starting to see the impact of those stupid quotas and tariffs.”
You explain the problem of American steel production as a refusal to modernize. Then you say the problem was caused by stupid quotas and tariffs, which the Japanese employ themselves to build up and protect their economy, as China does. You must not be very bright.
Well, eventually we’ll be like Argentina, and no foreign nation will want to invest here, certainly not for the human capital
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