Nippon Steel shares drop 5% after announcing $14.9 billion US Steel acquisition By Reuters
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© Reuters. FILE PHOTO: The logo of Nippon Steel Corporation is displayed at the company headquarters in Tokyo, Japan in this photo taken by Kyodo May 1, 2019. Mandatory credit Kyodo/via REUTERS/File Photo
TOKYO (Reuters) – Nippon Steel shares sank nearly 5% early on Tuesday after it clinched a deal to buy U.S. Steel for $14.9 billion in cash.
The shares were trading around 3,085 yen, down 4.7% from Monday’s close, after being untraded with a glut of sellers after the open.
The acquisition of U.S. Steel, which prevailed in an auction for the steel giant over rivals including Cleveland-Cliffs (NYSE:), will help Nippon Steel move toward 100 million metric tons of global crude steel capacity.
The Japanese company has not given any projection on the value of the synergies that will arise from the deal, but it is scheduled to hold a media briefing on Tuesday morning where the company’s president is expected to appear.
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© Reuters. FILE PHOTO: The logo of Nippon Steel Corporation is displayed at the company headquarters in Tokyo, Japan in this photo taken by Kyodo May 1, 2019. Mandatory credit Kyodo/via REUTERS/File Photo
TOKYO (Reuters) – Nippon Steel shares sank nearly 5% early on Tuesday after it clinched a deal to buy U.S. Steel for $14.9 billion in cash.
The shares were trading around 3,085 yen, down 4.7% from Monday’s close, after being untraded with a glut of sellers after the open.
The acquisition of U.S. Steel, which prevailed in an auction for the steel giant over rivals including Cleveland-Cliffs (NYSE:), will help Nippon Steel move toward 100 million metric tons of global crude steel capacity.
The Japanese company has not given any projection on the value of the synergies that will arise from the deal, but it is scheduled to hold a media briefing on Tuesday morning where the company’s president is expected to appear.
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