Nippon Steel to borrow from Japanese banks to buy U.S. Steel

Chicago, Dec. 18 – Nippon Steel Corp. secured financing commitments from certain Japanese banks to fund the acquisition of United States Steel Corp., according to a press release.

The $14.9 billion enterprise value includes the assumption of debt.

The transaction is not subject to any financing conditions. Nippon Steel has secured financing through bank credit facilities and commitments and will also use cash on hand.

U.S. Steel will continue to operate under the same brand name and headquarters will remain in Pittsburgh.

The transaction is expected to close in the second or third quarter of 2024.

Cleveland-Cliffs Inc. had been looking at U.S. Steel, contemplating a potential acquisition. The company stepped away from a potential bidding war in a press release and announced it would pivot to different capital allocation priorities, respecting U.S. Steel’s decision to go with a different, foreign buyer.

Citi is acting as financial adviser to Nippon Steel. Ropes & Gray LLP is acting as legal adviser to Nippon Steel.

Barclays Capital Inc., Goldman Sachs & Co. LLC and Evercore are acting as financial advisers to U. S. Steel. Milbank LLP and Wachtell, Lipton, Rosen & Katz are acting as legal advisers to U. S. Steel.

Nippon Steel is a Tokyo-based steel producer.

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