NSC has agreed to acquire US Steel in an all-cash transaction worth $14.9bn including debt.

Under the terms of the definitive agreement, the Japanese steel-maker will pay $55.00 (Y7,953) per share for US Steel, representing a premium of 40% to the latter’s closing stock price on 15 December 2023.

NSC expects the acquisition of US Steel to improve its manufacturing and technology capabilities while allowing it to expand its geographical footprint.

The transaction will combine technologies of NSC and US Steel to further innovation and deliver high-grade steel products. It will also help to address increasing demand for high-grade steel globally, the US-based company said.

NSC president Eiji Hashimoto said: “We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide, as well as our commitment to building a more environmentally friendly society through the decarbonisation of steel.

“We look forward to collaborating closely with the US Steel team to bring together the best of our companies and move forward together as the ‘Best Steelmaker with World-Leading Capabilities’.”