Japan’s Nippon Steel’s $14.9-billion acquisition of U.S. Steel, finalized at auction on Monday, is the culmination of multiple bids by a range of suitors for the 122-year-old company, once the largest corporation in the world.
Several quarters of falling revenue and profit made the Pittsburgh-based firm, which was also the first company ever to be valued at more than $1 billion, an attractive takeover target for rivals looking to add a maker of steel used by the automobile industry.
Here’s a timeline of recent events leading up to the deal between Japan’s largest steelmaker and the company whose steel was used to build iconic structures such as the United Nations building in New York City and the New Orleans Superdome.
DATE (all DEVELOPMENT
2023)
Aug. 13 U.S. Steel announces its intention to explore
strategic alternatives after receiving
multiple unsolicited proposals, ranging from
the acquisition of certain production assets
to consideration for the entire company
Aug. 13 U.S. Steel rejects a $7.3-billion offer from
Cleveland-Cliffs, leading to the initiation of
a formal review of its strategic options
Aug. 14 The United Steelworkers (USW) union supports
Cleveland-Cliffs’ bid to acquire U.S. Steel,
saying the company is the best strategic buyer
Aug. 14 Shares of U.S. Steel rise after privately held
firm Esmark makes a $7.8-billion all-cash
offer for the company
Aug. 16 ArcelorMittal, the world’s second-largest
steelmaker, considers a potential offer for
U.S. Steel, Reuters reports
Aug. 17 U.S. Senator J.D. Vance asks U.S. Steel to
rule out a foreign buyer for the company
Aug. 17 U.S. Steel states that its labor agreement
with USW does not grant the union the right to
veto a potential sale of the company
Aug. 22 Cleveland-Cliffs demands U.S. Steel reveal all
buyout offers it has received
Aug. 23 Esmark withdraws its bid for U.S. Steel,
respecting the position of the USW union,
which supports Cleveland-Cliffs’ offer
Aug. 29 U.S. Steel begins the due-diligence process
after entering agreements with numerous third
parties
Sept. 20 U.S. Steel and Cleveland-Cliffs clash over a
confidentiality pact
Sept. 21 Canada’s Stelco Holdings considers a bid for
U.S. Steel, Bloomberg news reports
Sept. 28 U.S. Steel allows Cleveland-Cliffs to
participate in its sale process
Oct. 31 Major automakers oppose Cleveland-Cliffs’
proposed acquisition of U.S. Steel, citing
potential cost increases and a slowdown in
electric-vehicle sales
Dec. 18 Japan’s Nippon Steel announces its plan to buy
U.S. Steel in a deal valued at $14.9 billion
Sources: Reuters reports, company records
Source: CNA
