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Nippon Steel has agreed to buy US Steel in a deal that values its American rival at $14.9bn, in the Japanese group’s biggest ever acquisition.
In a statement on Monday, the Japanese group said it would pay $55 a share in cash, a 40 per cent premium to the US steelmaker’s closing share price on Friday. Including debt, the deal values US Steel at $14.9bn.
The acquisition is the latest in a growing wave of Japanese overseas deals, which bankers say is accelerating despite the weakness of the yen.
“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities,” said Eiji Hashimoto, Nippon Steel’s president.
US Steel had been considering strategic options since earlier this year and in August it rejected a $7.32bn bid from domestic rival Cleveland-Cliffs.