Japan's Nippon Steel to buy US Steel for $14.1bn

Japanese steelmaker Nippon Steel said on Monday that it has agreed to buy US Steel for around $14.1bn.

Under the terms of the deal, Nippon will pay $55 per share in cash, which is a 40% premium to the closing US Steel share price on Friday.

As a result of the acquisition, Nippon said its expected total annual crude steel capacity will reach 86 million tonnes - accelerating progress towards its strategic goal of 100m tonnes of global crude steel capacity annually.

Nippon president Eiji Hashimoto said "We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonization of steel.

"NSC has long admired US Steel with deep respect for its advanced technologies, rich history, and talented workforce and we believe we can jointly take on the challenge of raising our aspirations to even greater heights. The transaction builds on our presence in the United States and we are committed to honouring all of US Steel’s existing union contracts."