US Steel, once the largest corporation, agrees to sell to Nippon Steel
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Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#2 > US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal.
> Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and started considering other bids.
> The union, which has 11,000 members at US Steel, attacked the Nippon Steel deal on Monday.
> “To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long,” said USW President David McCall. “We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.”
> The union made clear it hopes to block the deal.Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#3> US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal. > Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and sta…
on why it failed:
> US Steel and other steelmakers eventually followed those foreign competitors to upgrade factories and equipment, but they still largely used the older methods to make steel by melting raw materials such as iron ore in giant blast furnaces.
> Those “integrated” steelmakers soon lagged behind so-called “mini-mills,” nonunion competitors that use more efficient electric arc furnaces to turn old steel scrap from discarded cars and other products into new steel products.
> US Steel didn’t open its first electric arc furnace until 2020.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#4> US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal. > Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and sta…
on why it failed: > US Steel and other steelmakers eventually followed those foreign competitors to upgrade factories and equipment, but they still largely used the older methods to make steel by melting raw materials such as iron ore in giant blast furnaces. > Those “integrated” steelmakers soon lagged behind so-called “mini-mills,” nonunion competitors that use more efficient electric arc furnaces to turn old steel…
Quite possibly, especially if skills from old method aren't easily transferrable to the newer methods. There could also be issues with capital concerns, both finance and tax related. Perhaps a combination of all of them.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#5After being coddled up by the govt for so many years (NatSec tariffs, tax breaks, bailouts, import restrictions, etc), ultimately it still failed.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#6This will be another huge hit to what I call “Old Pittsburgh”. It’s still very much a steel city, especially in the South Hills. Interested to see that how it impacts the local economy.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#7FFS, they bought up and ruined Stelco here in Hamilton (Canada's Pittsburgh) just to loot its customer-list and they still failed anyways?
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#8> US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal. > Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and sta…
on why it failed: > US Steel and other steelmakers eventually followed those foreign competitors to upgrade factories and equipment, but they still largely used the older methods to make steel by melting raw materials such as iron ore in giant blast furnaces. > Those “integrated” steelmakers soon lagged behind so-called “mini-mills,” nonunion competitors that use more efficient electric arc furnaces to turn old steel…
Maybe they did and maybe they didn't. Nice example of biased journalism though, suggesting an association but providing no evidence for it.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#9> US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal. > Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and sta…
on why it failed: > US Steel and other steelmakers eventually followed those foreign competitors to upgrade factories and equipment, but they still largely used the older methods to make steel by melting raw materials such as iron ore in giant blast furnaces. > Those “integrated” steelmakers soon lagged behind so-called “mini-mills,” nonunion competitors that use more efficient electric arc furnaces to turn old steel…
Yes, absolutely.
Re: US Steel, once the largest corporation, agrees to sell to Nippon Steel
#10After being coddled up by the govt for so many years (NatSec tariffs, tax breaks, bailouts, import restrictions, etc), ultimately it still failed.
US Steel hasn't failed, it's been pumping out money for a long time. $1.6B in profit in the last 4Q's on a market cap of $9B. It's far from dead - leverage is only 45%; they've got $11B in equity in the company. [https://valustox.com/X]