Nippon Steel Corp., Japan’s largest steel production company, announced that it will acquire Pittsburgh-based US Steel in an all-cash deal, valued at $55 per share.
At $55 in cash, the deal is a 40% premium to the closing price of US Steel shares on Friday. The all-cash transaction of $14.9 billion was announced Monday.
Nippon believes the acquisition of US Steel “will enhance its world-leading manufacturing and technology capabilities and enable it to expand the geographic areas.” The US is currently the world’s fourth top producer of crude steel after China, India, and Japan.
The sale has sparked outrage across the political spectrum.
Republican Sen. J.D. Vance of Ohio said Monday he will fight the sale of U.S. Steel Corp. to Japan-based Nippon Steel Corporation.
“A critical piece of America’s defense industrial base was auctioned off to foreigners for cash,” Mr. Vance said. “I warned of this outcome months ago and will oppose it in the months ahead.”
Foreign takeover of key industries should be banned by law. America’s national security is more vital than “free trade”, which benefits foreign labor and globalists.