United States Steel Corporation (X): $30.47
Market cap: $6.86 B
Deal Value: $14.9 B
They say that markets can remain irrational longer than you can remain solvent. We just went through a multi-year period of irrationality when it comes to M&A and the latest victim of it is U.S. Steel as President Joe Biden decided to block its merger with Japan’s Nippon Steel.
The last time we discussed U.S. Steel in our September Merger Arbitrage Monday Post, it was before the elections, and we highlighted how the political climate had shaped the trajectory of the review process for this deal. Both presidential candidates—Donald Trump and Kamala Harris—had stated that they would not allow U.S. Steel to fall into foreign hands.