U.S. Steel bought out by Japan's Nippon Steel

[JSumm]

Interesting to see where this goes.

Copied from USA Today:

Check out this story from USA TODAY: US Steel to be acquired by Japan's Nippon Steel for nearly $15 billion

Nippon Steel Corporation is acquiring U.S. Steel in an all-cash transaction at $55 per share for a total enterprise value of $14.9 billion.

https://www.usatoday.com/story/money/20 ... 956807007/

[RustyIron]

Where it goes? Where do YOU think it will go?
I'll bet all the U.S. Steel stockholders are going out to buy celebratory champagne.
Did you SEE what Nippon Steel paid?


The merger of Carnegie, National, and Federal to make U.S. Steel created almost unimaginable wealth that was used to do a lot of great things. Maybe the current U.S. Steel shareholders will use their profits to do equally great things... even if that's just buying extra whipped cream for their Christmas pie. Ain't nothin' wrong with extra whipped cream.

A couple weeks ago I was snooping around a facility that was funded by Carnegie a few years after the merger. They were still using Carnegie branded I-Beams. I thought he script was really cool and took a picture.

[JSumm]

This is the company Dr. Larrin works for. Hoping they realize what an asset for the industry they have.

[JD Spydo]

It's really sad in a way that so many iconic USA companies are ending up being owned by foreign corporations.

Here in Kansas City years ago we had huge steel mill owned by ARMCO steel corporation. It was a fantastic employer and I had two really good friends that made great money working for them. It's now really sad to drive by the old ARMCO steel mill to see all the decaying buildings that they just left vacant.

It would be really interesting to know why all these great American Corporations are either dying on the vine or being acquired by foreign investors. Actually I may not want to know the truth about why all these once great industries are disappearing.

[James Y]

It's really sad in a way that so many iconic USA companies are ending up being owned by foreign corporations.

Here in Kansas City years ago we had huge steel mill owned by ARMCO steel corporation. It was a fantastic employer and I had two really good friends that made great money working for them. It's now really sad to drive by the old ARMCO steel mill to see all the decaying buildings that they just left vacant.

It would be really interesting to know why all these great American Corporations are either dying on the vine or being acquired by foreign investors. Actually I may not want to know the truth about why all these once great industries are disappearing.

Joe, I'm willing to bet it's more the American owners of the companies cashing out than it is a hostile takeover by foreign companies.

It could also be that nowadays, fewer Americans are willing to work in steel mills than in past decades.

Jim

[RustyIron]

Um... boys... there was no hostile takeover by anyone. U.S. Steel is a valuable company, that's why Nippon is paying a premium price to acquire them. The U.S. Steel factories are not going anyplace, and the union employees will be retained at their current rates. Nippon is already fourth largest in the world. They know what they're doing, so why do you think they would blow up the company they just paid $14 billion for? That makes no sense whatsoever.

The closing price before the announcement was $35. Nippon offered $55. A year ago, it was trading at $26. That's more than 100% return over the space of a year. That's a pretty good return. If you're feeling bitter and envious, be aware that when you look in the mirror, an owner of U.S. Steel might be looking back at you. Maybe you don't even know that you own U.S. Steel. Blackrock holds over $1 billion of U.S. Steel. Vanguard, over $1.8 billion. I doubt there are any stockholders who are complaining. And if non-stockholders are complaining... well... their opinions are nothing more than that. It's none of their business.

For those angry because they fear and despise the Japanese, you might be surprised that you also own part of Nippon Steel. Oregon Public Employees Retirement Fund is the largest institutional holder. Vanguard holds almost $400 million dollars in Nippon Steel. T. Rowe holds about $225 million. Fidelity owns over $50 million. I could dig deeper, but you get the idea. For those still feeling left out, the company is trading right around $22. Call your broker in the morning and show those Japanese who's boss!

[James Y]

Um... boys... there was no hostile takeover by anyone. U.S. Steel is a valuable company, that's why Nippon is paying a premium price to acquire them. The U.S. Steel factories are not going anyplace, and the union employees will be retained at their current rates. Nippon is already fourth largest in the world. They know what they're doing, so why do you think they would blow up the company they just paid $14 billion for? That makes no sense whatsoever.

The closing price before the announcement was $35. Nippon offered $55. A year ago, it was trading at $26. That's more than 100% return over the space of a year. That's a pretty good return. If you're feeling bitter and envious, be aware that when you look in the mirror, an owner of U.S. Steel might be looking back at you. Maybe you don't even know that you own U.S. Steel. Blackrock holds over $1 billion of U.S. Steel. Vanguard, over $1.8 billion. I doubt there are any stockholders who are complaining. And if non-stockholders are complaining... well... their opinions are nothing more than that. It's none of their business.

For those angry because they fear and despise the Japanese, you might be surprised that you also own part of Nippon Steel. Oregon Public Employees Retirement Fund is the largest institutional holder. Vanguard holds almost $400 million dollars in Nippon Steel. T. Rowe holds about $225 million. Fidelity owns over $50 million. I could dig deeper, but you get the idea. For those still feeling left out, the company is trading right around $22. Call your broker in the morning and show those Japanese who's boss!

I don't own any of it, but it doesn't bother me, either.

Also, I personally have no reason to hate the Japanese. All of my grandparents came from Japan. Hatred of anyone strictly because of their race or nationality, or blaming current generations of any country for a war that ended almost 80 years ago, is ignorant (to put it mildly).

Jim

[JSumm]

Nippon ended up doubling their initial offer. It was a huge sale. Larrin Thomas works for this steel company. I was curious if they plan on expanding operations or hopefully not moving any of the production around. That was all.

I regret posting this. I should have been clearer. My bad. I'll learn for next time.

[Ankerson]

It's really sad in a way that so many iconic USA companies are ending up being owned by foreign corporations.

Here in Kansas City years ago we had huge steel mill owned by ARMCO steel corporation. It was a fantastic employer and I had two really good friends that made great money working for them. It's now really sad to drive by the old ARMCO steel mill to see all the decaying buildings that they just left vacant.

It would be really interesting to know why all these great American Corporations are either dying on the vine or being acquired by foreign investors. Actually I may not want to know the truth about why all these once great industries are disappearing.

Joe, I'm willing to bet it's more the American owners of the companies cashing out than it is a hostile takeover by foreign companies.

It could also be that nowadays, fewer Americans are willing to work in steel mills than in past decades.

Jim

Jim,

It's all about the money, it's always all about the money.

Making the 1% even richer.

I don't have any skin in the game so I really don't care one way or the other.

Jim

[James Y]

Nippon ended up doubling their initial offer. It was a huge sale. Larrin Thomas works for this steel company. I was curious if they plan on expanding operations or hopefully not moving any of the production around. That was all.

I regret posting this. I should have been clearer. My bad. I'll learn for next time.

Jeff,

I didn't take your post in a negative way at all. Nor anybody else's who have posted in this thread. My comment was more regarding the inevitable people out there who would bring up the country of the purchasers in a negative light. And I definitely hope they keep Dr. Larrin. They have to; he's too valuable.

Jim

[James Y]

It's really sad in a way that so many iconic USA companies are ending up being owned by foreign corporations.

Here in Kansas City years ago we had huge steel mill owned by ARMCO steel corporation. It was a fantastic employer and I had two really good friends that made great money working for them. It's now really sad to drive by the old ARMCO steel mill to see all the decaying buildings that they just left vacant.

It would be really interesting to know why all these great American Corporations are either dying on the vine or being acquired by foreign investors. Actually I may not want to know the truth about why all these once great industries are disappearing.

Joe, I'm willing to bet it's more the American owners of the companies cashing out than it is a hostile takeover by foreign companies.

It could also be that nowadays, fewer Americans are willing to work in steel mills than in past decades.

Jim

Jim,

It's all about the money, it's always all about the money.

Making the 1% even richer.

I don't have any skin in the game so I really don't care one way or the other.

Jim

Yup, it's always about the money for the ones at the top.

Jim

[Fireman]

The Japanese just had to have that Magna Cut. Bring on the Magna Cut Katana!

[RustyIron]

The Japanese just had to have that Magna Cut. Bring on the Magna Cut Katana!

But Magna Cut is made by Crucible.
Those jokers at Nippon are going to be pissed when they learn that they bought the wrong company.

P.S.
I just did a search on Magna Cut, and autocorrect gave me "Manga Cut." I got to see a hundred pictures of big-eyed schoolgirls in short skirts jumping around and wielding swords. Now we know what the executives at Nippon are really into.

[JSumm]

I don't think US Steel makes any knife steel. At least any that my little bit of research could discern.

[Ankerson]

The Japanese just had to have that Magna Cut. Bring on the Magna Cut Katana!

But Magna Cut is made by Crucible.
Those jokers at Nippon are going to be pissed when they learn that they bought the wrong company.

P.S.
I just did a search on Magna Cut, and autocorrect gave me "Manga Cut." I got to see a hundred pictures of big-eyed schoolgirls in short skirts jumping around and wielding swords. Now we know what the executives at Nippon are really into.

I doubt that.

The knife industry is a VERY, VERY small percentage of the steel industry.

[Giygas]

Edit: wrong thread

[Bolster]

It's OK if you're not happy with this deal. The white house is not happy either.

https://www.wsj.com/business/deals/whit ... _lead_pos3

"The Biden administration’s top economic adviser said Thursday the $14.1 billion deal to acquire U.S. Steel by Japan’s Nippon Steel deserved “serious scrutiny” regarding its potential impact on national security and supply chains. "This looks like the type of transaction that the interagency committee on foreign investment Congress empowered and the Biden administration strengthened is set up to carefully investigate,” said National Economic Adviser Lael Brainard in a statement, referring to Cfius, which reviews certain transactions involving foreign investment in the U.S. “This Administration will be ready to look carefully at the findings of any such investigation and to act if appropriate. Cfius can recommend the president block a deal...Since the deal was announced, several members of Congress have raised concerns about the acquisition, with some saying they would try to stop it.”

Oh, and by the way, unrelated I'm sure:

"U.S. Steel’s headquarters and some of its plants are in Pennsylvania, which Biden will likely need to win in 2024 to capture a second term. The United Steelworkers union welcomed the White House statement."

[MacLaren]

It's really sad in a way that so many iconic USA companies are ending up being owned by foreign corporations.

Here in Kansas City years ago we had huge steel mill owned by ARMCO steel corporation. It was a fantastic employer and I had two really good friends that made great money working for them. It's now really sad to drive by the old ARMCO steel mill to see all the decaying buildings that they just left vacant.

It would be really interesting to know why all these great American Corporations are either dying on the vine or being acquired by foreign investors. Actually I may not want to know the truth about why all these once great industries are disappearing.

Joe, I'm willing to bet it's more the American owners of the companies cashing out than it is a hostile takeover by foreign companies.

It could also be that nowadays, fewer Americans are willing to work in steel mills than in past decades.

Jim

Jim,

It's all about the money, it's always all about the money.

Making the 1% even richer.

I don't have any skin in the game so I really don't care one way or the other.

Jim

Bingo!!!

[Naperville]

I do not own any stock, 401k, mutual fund, commodities or bonds but I'll tell you what I think.

The corporations that buy and use steel that would be produced and have purchased steel from US Steel in the past likely have nothing to worry about. As has been said Nippon just paid $14 billion for the co and they are not now going to shutter it.

The US Govt may have/had discussions with US Steel in the past for their needs, i.e. steel for tanks, apc's and ships. Some of that steel is unobtainium and somewhat secret. It may be an issue for the US Military to have a foreign co buy US Steel for this reason, but I do not know where they source their steel from.

As for me, I do not see any issue because Japan is one heck of an ally. They buy and fly our F35's. There are US Military bases in Japan and the USA would certainly defend Japan against every adversary.

[toomanyquestions]

I just did a search on Magna Cut, and autocorrect gave me "Manga Cut." I got to see a hundred pictures of big-eyed schoolgirls in short skirts jumping around and wielding swords. Now we know what the executives at Nippon are really into.

I had a good chuckle at that - :)