Japan's Nippon Steel All-Cash Deal For U. S. Steel Represents Equity Value Of $14.1B Plus Assumption Of Debt, For Total Enterprise Value Of $14.9B; $55/Shr Price Represents 40% Premium To Closing Stock Price On December 15, 2023
Portfolio Pulse from Benzinga Newsdesk
Nippon Steel has agreed to an all-cash acquisition of U.S. Steel for an equity value of $14.1 billion, with the assumption of debt bringing the total enterprise value to $14.9 billion. The offer price of $55 per share is a 40% premium over U.S. Steel's closing stock price on December 15, 2023.
December 18, 2023 | 11:06 am
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U.S. Steel is set to be acquired by Nippon Steel at a 40% premium to its closing price on December 15, 2023, with a per-share offer of $55.
The acquisition offer at a substantial premium is likely to drive U.S. Steel's stock price up in the short term as the market reacts to the favorable buyout terms. The 40% premium indicates a strong valuation compared to the recent closing price, which typically results in a positive market response for the target company's stock.
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