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US Steel To Acquire 49.9% Interest In Big River Steel For $700M Cash

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US Steel To Acquire 49.9% Interest In Big River Steel For $700M Cash

United States Steel Corporation (NYSE: X) announced Tuesday that it has taken the first step toward acquiring Big River Steel through the purchase of a 49.9% ownership interest at a purchase price of approximately $700 million in cash, with a call option to acquire the remaining 50.1% within the next four years.

The company said it has already committed financing to execute the transaction.

Big River’s recently announced Phase II-A expansion is expected to double the mill’s hot-rolled steel production capacity to 3.3 million tons annually, establishing it as one of the largest EAF-based flat-rolled mills in North America.

The enterprise value of Big River is approximately $2.325 billion, according to U.S. Steel. 

U.S. Steel shares were trading down 7.27% to $10.71 in Tuesday's premarket session. The stock has a 52-week high of $30.91 and a 52-week low of $10.16.

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Posted-In: Big River SteelM&A News Best of Benzinga

 

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