Once world’s largest, US Steel to sell itself to Japanese company

NEW YORK: US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal, the CNN reported.

The deal marks the latest step in a gradual decline for the iconic 122-year old company, which was once the largest company on the planet. It was one of the first major conglomerates and a symbol of American industrial might.

But it is no longer even the largest US steelmaker, having been surpassed by Nucor Steel years ago. “We are confident that … this combination is truly best for all,” said US Steel CEO David Burritt. “Today’s announcement also benefits the United States — ensuring a competitive, domestic steel industry, while strengthening our presence globally.”

“US Steel’s best days are ahead, together,” Burritt told investors at the conclusion of a conference call Monday. Under terms of the deal, US Steel’s operations will retain its name and will continue to have a headquarters in Pittsburgh. But the deal could still stir opposition.

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.”

Enter your email to subscribe to the CNN Business Newsletter.close dialogGet essential news and analysis on global markets with CNN Business’ daily newsletter.Sign Me UpNo, ThanksBy subscribing you agree to our The union made clear it hopes to block the deal.