Why Steel Giant U. S. Steel Shares Are Soaring Today
Portfolio Pulse from Lekha Gupta
Shares of United States Steel Corp (NYSE: X) surged approximately 28% after the announcement of its acquisition by Nippon Steel Corp (OTC: NISTF) for $14.1 billion plus debt, totaling an enterprise value of $14.9 billion. The offer price of $55 per share is a 40% premium over U. S. Steel's closing price on December 15, 2023. The deal, approved by both companies' boards, is expected to close in the second or third quarter of 2024, subject to shareholder and regulatory approvals. U. S. Steel recently provided Q4 guidance with adjusted EPS of $0.20-$0.25 and adjusted EBITDA of approximately $250 million.
December 18, 2023 | 11:43 am
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POSITIVE IMPACT
U. S. Steel's stock price soared following the acquisition announcement by Nippon Steel, with a significant premium offered over the recent closing price.
The acquisition news is highly relevant and important for U. S. Steel as it offers a substantial premium to shareholders and is a significant corporate event. The positive stock price reaction reflects investor approval of the deal terms. The confidence score is high due to the clear terms and approval from both companies' boards, although it is not 100 due to pending shareholder and regulatory approvals.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100