Menu
United States Steel Corporation (X): $31.27
Market Cap: $7.03 B
The acquisition of United States Steel by Nippon Steel (deal metrics here) entered a new chapter last week with candidates of both political parties saying they want to block the deal. This comes when we lean heavily on Japan, a key ally in our trade war with China. The stock price has been battered by the backlash, falling close to where it was when rumors of a deal first surfaced. The pre-rumor price was $22.72. The deal price is $55 per share in cash.
It’s been more than a year since U.S. Steel’s board decided to start a review process to evaluate strategic alternatives for the company. That review attracted multiple interested parties, including Cleveland-Cliffs (CLF), Esmark, and ArcelorMittal (MT). Ultimately, U.S. Steel entered into a definitive merger agreement with Japan’s largest steelmaker, Nippon Steel.
The review process wasn’t easy, but the deal itself faced even greater hurdles. The biggest obstacle came from the U.S. general elections, which coincided with the merger timeline, turning the deal into a political bargaining chip for both Republicans and Democrats.