U.S. Steel Bought by Japanese Rival, Ending Long Takeover Saga

U.S. Steel agreed on Monday to sell itself to Nippon Steel for $14.1 billion, capping months of speculation about the fate of the American industrial heavyweight.

U.S. Steel, which was formed more than a century ago from a part of Andrew Carnegie’s industrial empire, has been weighing several takeover bids, including by domestic rival, Cleveland-Cliffs. A little-known steel producer, Esmark, made an even larger bid — that was light on details — before withdrawing days later.

In the end, U.S. Steel chose an offer by one of its biggest global competitors that was worth significantly more than Cleveland-Cliffs’ initial offer: Nippon Steel will pay $55 a share in cash, compared with the $35 a share cash-and-stock bid that Cleveland-Cliffs made in August.

The combination with Nippon Steel would create “a truly global steel company with combined capabilities and innovation capable of meeting our customers’ evolving needs,” David B. Burritt, U.S. Steel’s chief executive, said in a statement. The company, whose creation was led by the business magnates John Pierpont Morgan and Charles Schwab, has vastly reduced sway since its heyday and for years has fallen behind its domestic competitors.

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