Pittsburgh Steelmaker Acquired Remaining Equity of Big River Steel
The transaction is expected to further strengthen U.S. Steel’s order book and accelerate product innovation for its customers.
SEATTLE (Scrap Monster): Pittsburgh-based integrated steelmaker United States Steel Corp. (U.S. Steel) announced that it has completed acquisition of remaining equity of Arkansas-based Big River Steel. The $774 million acquisition was entirely funded from cash on hand. As of end-November, the steelmaker ended with liquidity of $2.9 billion, including $1.7 billion in cash.
U.S. Steel had invested $700 million in Big River Steel in October last year in order to acquire 49.9% stake in it. At that time, the company had disclosed that it intends to acquire the remaining stake sometime before end-2023.
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David B. Burritt, president and chief executive officer of U. S. Steel commented that the Big River Steel acquisition is the cornerstone of its ‘Best of Both’ strategy. The acquisition will help the company in offering best-in-class service and most innovative steel products, he said. The partnership has created immense strategic benefits and has increased the company’s competitiveness in a broader range of applications, he added.
The transaction is expected to further strengthen U.S. Steel’s order book and accelerate product innovation for its customers.
The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2021.