Vice President: Saumya Shah
Analysts: Adityawardhan Gaikwad, Anushka Singh, Abhimanyu Pandey, Samuel Golder
Deal Overview
Acquirer: Nippon Steel
Acquiree: U.S Steel
Deal Size: $14.9 billion
Buy Side Advisors: Citi (Financial), Ropes & Gray LLP (Legal)
Sell Side Advisors: Barclays Capital Inc., Goldman Sachs & Co. LLC and Evercore (Financial), Milbank LLP and Wachtell, Lipton, Rosen & Katz (Legal)
Introduction
After an auction for the 122-year-old steelmaker, Japan’s Nippon Steel clinched a deal to buy U.S Steel. This deal was announced on the 18th of December and has been said to cost the Japanese firm $14.8 billion in cash (Reuters, 2023). This deal represents a price of $55 per share which equates to a 142% premium. The deal started with Cleveland-cliff, North America’s largest steel producer and supplier of iron ore pellets, pursuing an acquisition almost 6 months ago. This caused U.S. Steel to have a board of directors meeting to begin the sales process. However, on Sunday the 17th of December the board deemed Nippon’s offer superior due to the deal being almost $15 more per share. This acquisition will help Nippon move towards 100 million metric tons of global crude steel capacity while expanding its production in the US. Steel prices in the US are expected to rise and therefore imply the success of this acquisition can be largely beneficial. However, Nippon has not given any projection of the value of the synergies of the deal, considering they are paying 7.3 times U.S. Steel’s EBITDA (Reuters, 2023). This must be considered as a high risk but with the benefits stated earlier, the overall benefits should prevail.
U.S Steel Overview
Based in Pittsburgh, USA, U.S Steel are both domestic and international giants in the steel-producing industry who were founded in 1901. They operate through four main segments: North America Flat-Rolled, Mini Mill, U.S Steel Europe and Tubular Products. The Flat-Rolled segment offers slabs, strip mill plates, sheets, and tin mill products, as well as iron ore and coke. This segment serves customers in over 5 different markets from the electrical market to the transportation market. The Mini Mill segment provides hot, cold and coated sheets as well as electrical steel products. This once again serves numerous markets. The USSE segment provides slabs, strip mill plates, sheets, tin mill products, and spiral welded pipes. This segment serves customers in the construction, container, appliance and electrical, service centre, conversion, oil and gas markets. The Tubular segment offers seamless and electric resistance welded steel casing and tubing products, as well as standard and line pipe and mechanical tubing products primarily to customers in the oil, gas, and petrochemical markets. They also engage in the real estate business.
In 2023, they saw a gross profit of $2,250,000,000 which was a decline from $4,288,000,000 in 2022. This decline occurred because, during the first quarter, the company’s flat-rolled product segment (which accounts for almost 60% of total revenue each year) saw average price realizations decline by almost 26% (Forbes, 2023). Although they saw a reduction in their gross profit, in 2022 they were named the 24th-largest steel producer and second-largest in the U.S. Furthermore, since the acquisition in December 2023 their stock price has shot up. It was originally USD 39.51 and shot up to USD 48.35 by January 5th. The decision for this acquisition has so far clearly been positive and is looking to continue to be beneficial for both companies in the deal (Google Finance, 2024).
U.S Steel's EBITDA in the 2023 fourth quarter was around $330 million, rounding the full-round year-adjusted 2023 EBITDA of $2,139 million. This was a significant decline from 2022 when they had a full-year adjusted EBITDA of $4.23 billion and a fourth-quarter EBITDA of $431 million. The significant decrease in EBITDA is represented by the decrease in revenue from 2022 to 2023. Although U.S Steel originally saw a rise in revenue in 2021.Their revenue in 2022 was $21 billion which decreased to $18 billion in 2023.
Nippon Steel is a company based in Chiyoda City, Tokyo, Japan and operates in over 15 countries globally. The company functions in four main sectors; steelmaking, engineering, chemicals and system solutions. Nippon was founded in 1950 and has been a dominant company in the Japanese steel market for many years and recently became the largest steel manufacturer globally. It is involved in waste processing and recycling; supplying electricity, gas, and heat; and the provision of coal-based chemical products, petrochemicals, electronic materials, materials and components for electronic parts and semiconductors, carbon fibre, and composite products. However, all these products are produced under different subsidiaries and affiliates within the Nippon Steel ‘family’.
With respect to U.S Steel's decrease in revenue; Nippon has seen the complete opposite with a year-on-year since 2021. In 2021 their revenue was $4.8 trillion, which increased to $6.8 trillion in 2022. Which finally surged up by 17% (to $7.9 billion) in 2023. Looking at Nippon Steel’s EBITDA in 2023, it was at $6.502 billion, a year-over-year growth of approximately 308%. This, however, was a decrease from 2022 which annual EBITDA was $9 billion.
Since March 2021, a consistent increase in revenue and gross profit has been evident every year. This is partly to do with their strong view on the importance of research and development but also the four-pillar system they follow. They follow a four-pillar management system that focuses on 1. rebuilding the domestic steel business and strengthening their group’s management, 2. promoting a global strategy to deepen and expand their overseas business, 3. taking on the challenge of carbon neutrality and, 4. promoting digital transformation strategies. Their perspective is to focus on the medium to long-term success of the company with respect to this pillar system. In the past decade they have placed immense focus on the third pillar and their ESG targets. The goal of a net zero green transformation by 2050 has been important in their reputation management. This is because steel production produces 11% of all carbon emissions and maintaining a reputation that shows positive views to ESG is becoming more essential in their industry (Joint Research Centre, 2022).
Industry Analysis
The global steel market size was valued at $928 billion in 2022 with a predicted growth rate of 3% yearly until 2031 (Straits Research, 2023). The key drivers in this global market are rapid urbanization, the expanding automotive industry and the ever-increasing demand from the shipbuilding industry. According to Straits Research (2023), the construction sector is the largest consumer of steel worldwide which accounts for 50% of the world’s steel. Due to construction ever-increasing along with urbanization, steel is going to be required in many emerging countries to cope with the estimated 2 billion increase in the global population by 2050. As a result, signifying this helps requisite impetus market growth.
Due to the increased population, the automotive industry will also have a significant increase which will directly impact the steel industry. On average, approximately 900kg of steel is used in manufacturing a single car. This will be impactful because in 2022 85.4 million motor vehicles were produced globally (acea, 2023). Implicitly, the demand for steel will be evident and continue to grow, placing the steel industry in a positive position.
Moreover, 90% of world trade transportation is completed by the international shipping industry. With this population growth expected to increase as stated earlier, emerging economies will further demand more goods to be transported with these ships. This created an emergence for increased demand for steel as these ships are heavily reliant on strong steel.
Due to China being the world’s greatest steel manufacturer the Asia Pacific region is expected to dominate the market over the next decade. Exporting is essential for China and they will continue to lean into this meaning China will definitely have this demand to be prominent in terms of the requirements of steel production. Not only does China dominate this market in the Asia Pacific area, but India does too. Due to the increased construction and population growth, the demand for infrastructure and shipping will continue to rise and as a result, more steel is being required as it continues to grow.
The future looks bright for the steel industry, particularly due to rapid urbanisation. This rapid urbanisation growth is largely due to emerging economies continuing to develop, as income per capita in these areas rises, like in India, demand for goods will also increase meaning further demand for steel in terms of both goods and for the manufacturing of the ships.
Iron ore prices have been increasing globally and have as a result been affecting the price of steel. Prices of iron ore have seen relative increases in price in recent years with them as high as 22% in the last quarter of 2017. Thereby, increased production costs of steel have been ever-present. Not only this but over the last half a century, continued advancements in steel or steel grades have developed. This has meant many different types of steel are present in the steel industry like giga steels and high-strength steels. This, though, has meant safety concerns about legitimate and strong steel have occurred. As a result, levels of standard iron ore and steel used are predominantly high. If this is not considered, some levels of ore produced may not pass as high enough quality and resultantly cause issues for firms. These threats must all be considered for companies working in the steel industry.
With respect to competitors in the steel production industry, a clear dominance of Chinese companies is evident. China's China Baowu Steel Group dominates the industry, producing 131.84 million tonnes of steel in 2022 (just over 10% of global steel production). This is almost double the second highest. This rate of steel production though has been growing massively throughout the years and is by far the quickest growing in terms of production and profitability. The second most dominant force in this industry is ArcelorMittal who produce 68.89 million tonnes. However, their level of growth is a lot smaller and less impactful than number one (World Steel Association, 2023).
Deal Valuation and Financial Analysis WACC
The WACC calculation is as usual and uses the sources and assumptions in the notes section.
When exploring the financial background of this acquisition, it is important to delve into the intrinsic value of U.S. Steel using a Discounted Cash Flow Model. Upon incorporating analyst forecasts and considering anticipated cost synergies, the following financials emerge.
DCF Model
In the DCF valuation of U.S. Steel, the Perpetuity Growth Method (PGM) and the Exit Multiple Method (EMM) yield divergent implied share prices, primarily due to the perpetual revenue growth assumption. While industry norms suggest a 3.7% growth rate, actual data indicates a stable -4.93% growth trend for US Steel. Despite this negative empirical trajectory, an adjustment is made, reflecting the expectation that a company as significant as U.S. Steel within the US economy is unlikely to experience perpetual decline. Nonetheless, recalculating the implied share price with the -4.93% growth rate results in a substantially lower figure of 37.41 USD, in contrast to the initial estimate of 80.24 USD. This adjustment notably diminishes the disparity between the EMM and PGM outcomes, underscoring the sensitivity of valuation results to underlying assumptions.
Terminal Value, Share Price and Sensitivity
Further, the EMM relies on market-based multiples and is hence a relative valuation method that relies on industry comparables. The low implied share price derived from the EMM (as compared to the PGM) signifies U.S. Steel’s strength over its competitors, justifying Nippon Steel’s conviction in acquiring the company. In contrast, the PGM estimates the value of a company's equity based on its expected future cash flows and a perpetual growth rate. It incorporates assumptions about the future that the EMM fails to account for, and hence produces a vastly different implied share price.
As detailed below, using EV/EBITDA for calculations since alternative multiples like EV/REV conflate poor revenue performance with low growth potential - this is particularly important in asset-heavy industries like steel.
The present value of terminal value under the EMM is $6,308,000,000, while it is $15,063,000,000 under the PGM. By merging the unlevered free cash flows from the two methods, the estimate for the equity value becomes $13,525,640,000. Accounting for the diluted shares outstanding, the implied share price is $60.62. This indicates that the stock could be undervalued, trading at a discount over the intrinsic value of 54.1% prior to the acquisition being announced, and last traded at a discount of 28.4%.
Comparable Company Analysis and Precedent Transactions
In further valuation of US Steel, it is important to compare the firm’s current valuation multiple to similar companies within the steel industry. We were able to find similar companies in the steel industry due to most comparable firms being public and most of them operating in a similar way. Using the table above, a range of values for the share price was calculated. The suitable range from this analysis was a share price of $33.55 - $46.66. Hence, considering the EV/EBITDA multiple as it accurately demonstrates the current market price as well, the premium paid is 17.8%.
Further, including a precedent transaction analysis to indicate a suitable range of multiple values was essential. It was difficult to get suitable transactions that would reflect the US Steel deal as most of the deals that took place in this sector were private. However, this is a valid representation of where US Steel’s share price should be in this industry compared to other similar companies.
Deal Rationale
Nippon rationale
Nippon Steel Corporation’s (NSC) move to acquire US Steel is part of its broader global strategy to expand its steel production and distribution worldwide, aiming to emerge as a key competitor against Chinese manufacturers. This acquisition marks an extension of Nippon's strategy beyond its current presence in ASEAN markets, where it has already acquired Indian steel manufacturer Esser Steel and Thai steelmakers G Steel and GJ Steel to target Western markets. The acquisition of US steel amplifies Nippon’s presence in the US, a market that is currently experiencing high demand for steel. The US is currently the largest market for high-grade steel due to Biden’s infrastructure bill, which increases demand for construction, and the extensive use of steel in electric vehicles, whose production is increasing drastically in the country. This is specifically relevant as US Steel just started its production of non-grained-oriented steel sheets used in EV motors in October. Nippon’s acquisition will allow it to position itself in the US market, providing it a base for domestic production of automotive steel in the country, building an integrated structure spanning from raw materials to finished production, and better meeting local demand. It would also allow the Japanese company to avoid high steel import tariffs and increase its global market share.
Moreover, the acquisition allows Nippon to diversify amid its declining Japanese market. The demand for steel in Japan has been falling due to delayed automobile production. In fact, Nippon is cutting its production facility in Japan by 25% between the fiscal year 2019 to 2025. This acquisition will allow Nippon to enter the US market efficiently and compensate for its losses in its domestic market. It would also provide the company with the technology and market necessary to counter China’s dominance in the steel industry.
US steel rationale
The American company is more than 122 years old and was once at the forefront of the steel industry. It was the first company to be valued at over a billion dollars. However, it eventually failed to progress with new technology, causing it to be unable to compete with its Japanese and German competitors, who had to rebuild their technologies from scratch following the events of World War II. US Steel has lagged far behind its competitors in innovating and developing new technology, such as the electric arc furnace, which reuses old steel scarps. US Steel didn't open its first electric steel furnace until 2020, while its competitors had implemented it since 2016.
The overall US steel industry lost its competitiveness in the global market due to various factors, such as the rigorous regulations concerning environmental and legal issues, the failure to invest in research and development of new technologies, and excessive wage settlements, which increased the costs for US firms. For example, in 1984, only 40% of the US steelmaking capacity used continuous casting, compared with 89% in Japan and 65% in Europe. Hence, the American company, restrained by the sluggish outlook of its domestic market, eventually lost its stand in the market. It reported a net loss of $80 million in the last quarter of 2023, closing at net earnings of $895 million for the entire 2023. This was down 65% from the net earnings in 2022, which amounted to approximately $2.5 billion. Hence, deciding to choose the most optimal path to continue its operations, the American company is set to gain a 40% premium on its closing stock price on December 15, 2023, with a $55.00 per share purchase price, making it a profitable exit for many shareholders and meeting the needs of most of its stakeholders. The deal allows US Steel to sustain its original identity and operate as an independent firm, gaining financial support and certainty for its shareholders due to the all-cash nature of the deal.
Strategy
NSC's acquisition is driven by its core objective of bolstering resilience against competition from Chinese steel manufacturers while simultaneously expanding into new markets and embracing sustainable technologies. Their approach encompasses offensive and defensive tactics. The acquisition enables NSC to capitalise on the profitable investments of US Steel, such as BRS, an electric arc furnace facility with an annual capacity of 3.3 million tons, facilitating long-term transformation. NSC's offensive strategy involves diversifying into markets like India, Thailand, and the US to expand production and market reach amidst a shrinking domestic market. Importantly, the deal strengthens NSC's ability to compete against low-cost, subsidised Chinese manufacturers, who have significantly increased their production over the past two decades, capturing over half of the steel industry market share by 2018. This trend is concerning, given steel's critical role in manufacturing. Furthermore, Chinese firms have acquired steel producers globally to circumvent tariffs imposed by the EU and US, aided by unfair government support like subsidies and interest free loans. This poses economic and political challenges globally, prompting NSC's global acquisition strategy to counter and compete effectively with major steel manufacturers.
Revenue Synergies
With US Steel’s historical brand value and Nippon’s world-leading manufacturing and technological capabilities, the deal is set to create extensive synergies for both companies. The most obvious synergy generated through the deal is the use of efficient technologies, leading to greater production. The deal is expected to raise Nippon’s production to 86 million tonnes- accelerating its progress toward NSC’s strategic goal of 100 million tonnes of global crude steel capacity annually. NSC’s large-scale manufacturing will better enable it to exploit US Steel’s wide and strong client base, increasing revenues for both companies.
Moreover, the deal is likely to strengthen the abilities of both companies to develop and implement sustainable technologies in their operations. Both entities share a commitment to decarbonise by 2050. Sustainable solutions are a fundamental pillar of the steel industry’s growth and existence. NSC’s development of three breakthrough technologies, including hydrogen injection technology into blast furnaces, high-grade steel production in large-size electric arc furnaces, and hydrogen use in the direct iron reduction process, sets the company on the right path to achieving carbon neutrality by 2050. Along with that, US Steel is also focused on reducing its carbon footprint, including constructing a second state-of-the-art mini mill in Arkansas and striving to decrease its energy consumption in its operations. This acquisition can, henceforth, drive the global steel industry towards decarbonisation and help the combined entity to make its steel production more sustainable, creating valuable revenues in the long run. Also, US Steel already benefits from the Inflation Reduction Act, which provides tax incentives and other benefits, as it provides steel for renewable energy infrastructure such as wind turbines. This deal could further aggregate the company’s ability to facilitate such projects, especially with their growing demand to reverse climate change. Hence, this could create a new revenue stream for the company, allowing them to supply green initiatives cost-effectively while also potentially benefiting from tax incentives and improved corporate image.
Cost synergies
The integration of advanced technologies promises to yield substantial cost synergies for the combined entity, offering a strategic advantage in an increasingly competitive global market. At the forefront of these synergies lies the potential for economies of scale. By ramping up production capacity through the merger, the average costs per unit can be notably reduced, bolstering the firm's overall competitiveness. This strategic move not only positions the entity to effectively challenge subsidised Chinese producers but also carries significant political implications, bolstering the economic interests of their respective home countries.
Moreover, U.S. Steel's formidable competitive edge in low-cost iron ore, mini mill steelmaking, and superior finishing capabilities presents a compelling case for synergy. By leveraging these strengths, the combined entity can avoid resource duplication and streamline operations for optimal efficiency. Nippon Steel's adept resource management further enhances this optimisation, ensuring the judicious utilisation of U.S. Steel's resources within the merged framework.
In addition to operational efficiencies, the collaboration between Nippon Steel and U.S. Steel holds promise for innovative recycling initiatives. By jointly investing in recycling infrastructure and sharing expertise, the entity can optimise raw material utilisation while minimising waste generation. This commitment to recycling not only drives cost savings but also underscores a shared dedication to environmental sustainability, aligning with evolving consumer preferences and regulatory standards.
Financial Synergies
The deal is further expected to generate significant financial synergies that can benefit by increasing their earnings, debt, and cash flow. The deal is obviously expected to increase earnings for the combined entity, with NSC’s annual steel capacity being more than triple that of US steel, at 73 million. This would help aggregate the cash inflows received by the combined entities. It would improve the company's overall financial position and help recover the cost of the investment in US steel by NSC. NSC's robust EBITDA generation over the past two years, averaging approximately $8.3 billion annually, is expected to offset the debt-financed portion of the acquisition, which amounts to roughly $3.8 billion. The generation of new cash flow is also likely to help the entity fund capital expenditures internally and reduce balance sheet risks during economic downturns. Already, the news of the acquisition and US steel’s hefty investments has paid off with a financially fruitful year, with a net profit of $895 million, equal to $3.56 per diluted share, and fourth-quarter adjusted net earnings of $167 million, or $0.67 per diluted share. U.S. Steel's fourth-quarter EBITDA reached $330 million, supported by strong performances in the Mini Mill and Tubular segments and year-end adjustments. Despite a negative free cash flow of $244 million due to significant CapEx investments, the company maintained a robust balance sheet with $5.2 billion in liquidity, including $2.9 billion in cash and a commendable leverage ratio. This is further likely to aggregate with the merger that will pool in additional investments to help reduce debt and contribute to EBITDA generation.
Risks
The acquisition of US Steel by Nippon Steel presents various risks that require prudent considerations from all stakeholders involved. While the acquisition entails significant synergies and poses high potential for the global market, it is essential to acknowledge and address the potential challenges associated with this transaction.
The potential intervention by the US government due to political and legal concerns, including protectionism, poses a primary risk that can potentially restrict the deal. The proposed acquisition has already sparked objections from various quarters, including labour unions and policymakers, who question its impact on national security and the welfare of workers. The Committee on Foreign Investment in the United States (CFIUS) has been urged to review the transaction, reflecting concerns about the implications for domestic industries and employment. Presidential Candidate for the 2024 elections, Donald Trump, has also vowed to block the deal if elected. Hence, this acquisition significantly depends on political outcomes and factors and risks being declined by regulatory authorities due to unfair bias in decision-making.
Moreover, the acquisition may exacerbate dependency on foreign ownership in critical industries, which could have far-reaching implications for national sovereignty and economic resilience. Critics argue that foreign ownership of iconic American companies like US Steel may compromise strategic interests and weaken domestic control over vital sectors, including steel production. They also raise concerns regarding the impact of this deal on employment in the US due to potential redundancies as a result of job duplication. However, this concern is unsubstantiated as NSC will be taking over the union contract covering current union workers that will only terminate in 2026, and it will keep the current headquarters to run its U.S. operations, legally protecting all US workers. It is, in fact, predicted to preserve more than fourteen thousand jobs.
Environmental sustainability is another critical consideration in light of the acquisition. Despite NSC’s recent efforts to achieve greater sustainability, it has continued its reliance on coal-based production methods, and its recent investment in Teck’s coal mines in Canada raised concerns about the Japanese producer’s carbon emissions and environmental impact. By the year 2050, amid global efforts to achieve net zero emissions, the company intends to continue operating blast furnaces utilising its "Super COURSE 50" technology. However, based on the company's own optimistic yet unverified projections, this technology is expected to reduce blast furnace emissions by a maximum of 50 per cent at best. NSC is already Japan’s largest blast furnace operator, and with the addition of US steel furnaces, it is on the path to becoming the global leader in blast furnace operators. Hence, this deal may aggravate their incompetence in managing their carbon emissions, leading to diseconomies of scale with excess costs of environmental impact. Hence, this is a critical risk that requires careful review to ensure the success of the acquisition.
Another primary risk in financing the M&A deal is the potential overvaluation of US steel. The company was paid a 40% premium above its closing stock price on the day. This is specifically dangerous as overpaid acquisitions fail to generate shareholder value and can cause an extensive dent in the financial position of the NSC, especially as its acquisition is party-funded by debt and is in all cash. Since the valuation has now already been agreed upon, it is important that the combined entity works on the company to extract the mentioned synergies to create value for its shareholders and achieve its initial goals. Additionally, the acquisition is also likely to increase the combined entity’s debt-to-equity ratio to 0.9 from the initial 0.5, which, despite the increase, is still under acceptable levels and should be countered by the increased cash flow. While this should not hamper the overall finances of the combined company, it would require more careful consideration of the workings involved and steps that should be taken to extract the expected synergies.
Competition from Chinese steel manufacturers can pose another risk to the success of the deal. The acquisition has obvious political implications and is likely to lead to aggressive responses from Chinese competitors. Steel producers from China are heavily backed by their government, and following the acquisition, the competition may increase. Chinese producers may implement aggressive price cuts, improve the quality of their steel, and use inorganic strategies by acquiring more steel manufacturers across the world to minimise or neutralise the advantages incurred by NSC. The acquisition deal already faces scrutiny in the US, which is likely to persist even after the deal is completed, in the form of various regulations, labour union challenges, and potential client-related problems, hampering NSC’s ability to effectively respond to Chinese tactics and undercut the success of the deal.
Conclusion
In conclusion, the acquisition of U.S. Steel by Nippon Steel marks a significant strategic move in the global steel industry landscape. With Nippon's aim to expand its presence in key markets and bolster its competitive position against Chinese manufacturers, this acquisition aligns with the broader strategic objectives of both companies.
The deal presents numerous opportunities for revenue and cost synergies, leveraging U.S. Steel's historical brand value and Nippon's advanced manufacturing capabilities. It positions the combined entity to capitalize on emerging trends in the steel industry, such as sustainable technologies and increased demand from sectors like automotive and construction. The acquisition is also expected to yield financial benefits for the combined entity. This will likely arise from an increase in earnings, cash flow and debt reduction. Nippons’s robust EBITDA generation is expected to offset the debt-financed portion of the acquisition, while the generated cash flow could help internal funding for capital expenditures and mitigate any issues on the balance sheet in times of economic downturns. Despite U.S. Steel's negative free cash flow, the company maintains a robust balance sheet with ample liquidity and a commendable leverage ratio. The merger is poised to further strengthen the financial standing of the combined entity, with additional investments contributing to debt reduction and EBITDA generation.
The acquisition of US Steel by Nippon Steel presents several risks that require careful consideration. Political and legal concerns, including potential intervention by the US government due to protectionism, pose a significant threat to the deal. Criticisms regarding foreign ownership in critical industries and potential job redundancies have also surfaced, although Nippon’s commitment to preserving jobs and honouring union contracts mitigates some concerns. Environmental sustainability is another area of scrutiny. Nippon's reliance on coal-based production methods raises worries about carbon emissions. This deal also faces financial risks, including the potential overvaluation of US Steel and increased debt-to-equity ratio, further complicating the deal's success. Finally, competition from Chinese steel manufacturers, backed by government support, presents a challenge that could undermine the advantages gained from the acquisition.
Overall, the acquisition represents a bold strategic move that has the potential to reshape the global steel industry landscape. With careful planning and execution, it could pave the way for enhanced competitiveness and sustainable growth for the combined entity in the years to come.
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