The Nippon Steel addition to US Steel, according to analysts, could have serious implications for the automotive industry, especially for electrical steel, which is used in electric vehicles, read Auto news.
Japanese Nippon Steel plans to acquire the American steel company US Steel, the legendary industrial giant and supplier of steel for the automotive industry for 14.9 billion dollars. The company is a long-time strategic partner for the automotive sector of American America.
Nippon Steel Corp. buy United States Steel Corp. to create another large steel company in the world (and the largest outside China), which plays a key role in American steel manufacturers and auto manufacturers.
The good fortune put an end to thousands of years of uncertainty for the upcoming US Steel company, a symbol of American industry, as it looked at its proposals from the moment it curated the proposals of its competitor Cleveland-Cliffs Inc. in sickle. Nippon Steel's full penny position was significant, while Cliffs' lower position of approximately $7.25 billion was posted at that time, and a whopping 142% premium to US Steel's stock price on the remaining trading day ahead of the strategic shock I'll take a look.
For Nippon Steel, Japan's largest steelmaker, this will provide a significant foothold in the American steel industry if the United States can benefit from increased spending on infrastructure. US Steel is a key supplier focused on the local automotive market. The Japanese company is growing abroad, but is facing increased demand in the middle of the country due to weakened conditions and increased competition in Asia.
As a result, as was announced on Monday, a steel giant will be created with factories that stretch from Slovakia to Osaka and Pennsylvania. Following the presentation of the company, the company became another largest steel producer in the world with a production capacity of over 86 million tons, surpassing the European giant ArcelorMittal. Only the Chinese state company China Baowu Steel Group Corp. maybe mother more.
However, the United Steelworkers union criticized the foreign production and called on US regulatory authorities to impose greater control.
