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U.S. Steel, once the largest company in the world, has agreed to sell itself to a Japanese steel company. The 122-year-old U.S.Steel reached a $14.1 billion deal with Nippon Steel, Japan's largest steelmaker.
"This transaction realizes the tremendous value today in our company and is the result of our Board of Directors' comprehensive and thorough strategic alternatives process. For our U. S. Steel employees, who I continue to be thankful for, the transaction combines like-minded steel companies with an unwavering focus on safety, shared goals, values, and strategies underpinned by rich histories," President and Chief Executive Officer of U. S. Steel, David B. Burritt, said.
U.S. Steel has been struggling for several years and has been surpassed as the top steel manufacturer in the country by Nucor Steel.
The company had been mulling several takeover bids, including one from Cleveland-Cliffs, which was supported by the United Steelworkers union.
However, Nippon Steel outbid Cleveland Cliffs, offering $55 a share, compared to $32.53 a share.
The Steelworkers union blasted the proposed deal.
"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," said USW President David McCall. "We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead, it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company."