Japan’s Nippon Steel to Purchase U.S. Steel for $14 Billion
A deal has been reached for Nippon Steel, Japan’s largest steelmaker, to buy U.S. Steel for $14 billion.
U.S. Steel was once the world’s largest corporation and a symbol of American industrial might, but these days, it isn’t even the largest American steelmaker. The new deal is the latest step in the gradual decline of the iconic 122-year-old company.
The agreement would allow U.S. Steel to retain its name and keep its headquarters in Pittsburgh, but that could face opposition. Earlier this summer, the United Steelworkers Union vowed to only support a proposed purchase offer from another unionized American steel company, Cleveland-Cliffs. The U.S. Steel board rejected that offer.
Rep. Spencer Igo, the Republican state legislator from the Grand Rapids area, released a statement on the acquisition today. Igo says today’s news opens the door for “new possibilities on the Iron Range” because it will better position the region to “play an important role in helping meet the increased, global demand for steel.” He says many questions remain, but he expects operations at Keetac and Minntac to “continue uninterrupted.”