Paying $774 Million in Cash, U.S. Steel to Complete Acquisition of Arkansas Steelmaker
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U.S. Steel has exercised its option to acquire the remaining equity of an Arkansas steel producer 14 months after the two companies entered into a joint venture.
U.S. Steel paid a reported $700 million to acquire a 49.9% stake in Big River Steel in October of 2019; that agreement included an option for the company to purchase the remaining stake within 48 months.
U S Steel expects to lose 85 cents a share in the fourth quarter nwitimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nwitimes.com Daily Mail and Mail on Sunday newspapers.
December 15, 2020 By David Murray
United States Steel Corporation announced December 8 that it has exercised its call option to acquire the remaining equity of Big River Steel for approximately $774 million from cash on hand. Big River Steel’s barge-served facility is located in Osceola, Ark. It just completed Phase 2 of expansion plans, ahead of schedule and under budget, that will double its capacity to 3.3 million tons a year.
In October 2019, Big River Steel had announced it had agreed to receive $700 million in cash from U.S. Steel in return for a 49.9 percent ownership interest, with an option to acquire the remaining 50.1 percent. It’s that option that U.S. Steel is exercising now.
Congressman-elect Frank Mrvan will serve as co-chairman of the Congressional Steel Caucus, which represents the interests of the steel industry and steelworkers in Congress.
âI am incredibly grateful for the opportunity to join the leaders of the Congressional Steel Caucus to ensure that our workers and the American steel industry can continue to make the best steel in the world and fairly compete in our global economy, Mrvan said. I look forward to working through the caucus to advance policy priorities for the steel industry and make sure that they can continue to be the engine that supports the strength of our national defense and our national economy.â
Cleveland-Cliffs and US Steel announce major acquisitions wsws.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wsws.org Daily Mail and Mail on Sunday newspapers.