United States Steel Corporation Completes Big River Steel Acquisition
15 Janeiro 2021 - 4:30PM
Business Wire
- Enables profitable growth through sustainable production of
the most advanced high strength steels from the only LEED-certified
steel mill
- Creates North America’s only customer-centric “Best of Both”
steelmaker, combining world-competitive integrated and mini mill
technologies to improve through-cycle stockholder returns
- Aligns superior workforce around more innovative and
entrepreneurial “Best of Both” strategy
United States Steel Corporation (NYSE: X) (“U. S. Steel”)
announced today it closed its acquisition of the remaining equity
of Big River Steel (“Big River Steel”) for approximately $774
million from cash on hand. The transaction met customary closing
conditions, including antitrust approval from the United States
Department of Justice.
“We are creating the first ‘Best of Both’ integrated and mini
mill steel company. Taking a page from the Big River Steel
playbook, we are closing on this world competitive green steel
asset purchase under budget and ahead of schedule,” said U. S.
Steel President and Chief Executive Officer David Burritt. “Our
customers now have access to a truly sustainable source of the most
advanced high strength steels. Our customer-centric organization
will provide customers, employees, communities and investors with
the world competitive advantages from the most advanced process
technology and the intellectual capital necessary to produce the
most advanced products.”
“The innovative and entrepreneurial collaboration we are already
seeing has us even more enthused about the potential for our people
and our ‘Best of Both’ company. This is not an either/or initiative
where you compromise the competitive advantage of one versus the
other. Instead, we are dedicated to encouraging and sharing the
best attributes of both, to the benefit of our customers. We fully
expect to generate profitable growth quickly in 2021 and enable a
more nimble, innovative, and cost-effective company across the
business cycle.”
U. S. Steel’s management team will provide additional detail on
the Big River Steel acquisition during the company’s fourth quarter
2020 earnings conference call scheduled on January 29, 2021, at
8:30 a.m. EST. The call will be available via the U. S. Steel
website. To access the webcast, visit the website at
www.ussteel.com and click “Investors.” Replays of the conference
call will be available on the website after 10:30 a.m. EST on
January 29, 2021.
Barclays served as exclusive M&A financial advisor, while
PJT Partners and Rothschild & Co. served as financing advisors
to U. S. Steel on the acquisition, and Milbank LLP provided legal
counsel.
Big River Steel is a LEED-certified Flex Mill™ in northeast
Arkansas that is believed to be the newest and most advanced flat
rolled mill in North America. Big River Steel’s advanced
manufacturing technology and skilled operators combined with U. S.
Steel’s product development capabilities and intellectual property
have allowed Big River Steel to produce 14 advanced U. S. Steel
grades, including substrate for its XG3™ grade of Generation 3
advanced high-strength steel (AHSS). Big River Steel offers
high-quality products and services to discerning customers in the
automotive, energy, construction, and agricultural industries. Big
River Steel’s Phase II-A expansion doubled the mill’s hot-rolled
steel production capacity to 3.3 million tons annually,
establishing it as one of the largest electric arc furnace-oriented
flat-rolled mills in North America. The Phase II-A expansion was
completed in November 2020, ahead of schedule and below budget.
FORWARD-LOOKING STATEMENTS
This release contains information that may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” “should,”
“will,” “may” and similar expressions or by using future dates in
connection with any discussion of, among other things, operating
performance, trends, events or developments that we expect or
anticipate will occur in the future, statements relating to volume
changes, share of sales and earnings per share changes, anticipated
cost savings, potential capital and operational cash improvements,
anticipated disruptions to our operations and industry due to the
COVID-19 pandemic, changes in global supply and demand conditions
and prices for our products, international trade duties and other
aspects of international trade policy, the integration of Big River
Steel in our existing business, business strategies related to the
combined business and statements expressing general views about
future operating results. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking. Forward-looking statements are not historical
facts, but instead represent only the Company’s beliefs regarding
future events, many of which, by their nature, are inherently
uncertain and outside of the Company’s control. It is possible that
the Company’s actual results and financial condition may differ,
possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements. Management
believes that these forward-looking statements are reasonable as of
the time made. However, caution should be taken not to place undue
reliance on any such forward-looking statements because such
statements speak only as of the date when made. Our Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our Company's historical experience and our present
expectations or projections. These risks and uncertainties include,
but are not limited to our ability to realize the level of cost
savings, productivity improvement, growth or other anticipated
benefits and additional future synergies, including in the time
period anticipated, of the acquisition of Big River Steel; our
ability to successfully integrate the businesses of Big River Steel
into our existing businesses, including uncertainties associated
with maintaining relationships with customers, vendors and
employees, as well as differences in operating technologies,
cultures, and management philosophies that may delay successful
integration; additional debt, which we assumed in connection with
the acquisition of Big River Steel and incurred to enhance our
liquidity during the COVID-19 pandemic, may negatively impact our
credit profile and limit our financial flexibility; business
strategies for the combined company's operations; the diversion of
management’s attention from ongoing business operations; our
ability to retain and hire key personnel, including within the Big
River Steel business, and to access our distribution channels,
including the availability of workforce and subcontractors;
potential adverse reactions or changes to business relationships
resulting from the completion of the acquisition of Big River
Steel; unknown or underestimated liabilities and unforeseen
increased expenses or delays associated with the acquisition and
integration beyond current estimates; and the risks and
uncertainties described in “Item 1A. Risk Factors” of our Annual
report on Form 10-K, quarterly reports on Form 10-Q and those
described from time to time in our future reports filed with the
Securities and Exchange Commission.
Founded in 1901, the United States Steel Corporation is a
Fortune 250 company and a leading steel producer. Together with its
subsidiary Big River Steel and an unwavering focus on safety, the
company’s customer-centric “Best of Both” world-competitive
integrated and mini mill technology strategy is advancing a more
secure, sustainable future for U. S. Steel and its stakeholders.
With a renewed emphasis on innovation, U. S. Steel serves the
automotive, construction, appliance, energy, containers and
packaging industries with high value-added steel products such as
U. S. Steel’s proprietary XG3™ advanced high- strength steel. The
company also maintains competitively advantaged iron ore production
and has an annual raw steelmaking capability of 26.2 million net
tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania,
with world-class operations across the United States and in Central
Europe. For more information, please visit www.ussteel.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210115005537/en/
John O. Ambler Vice President Corporate Communications T – (412)
477-1719 E – joambler@uss.com
Kevin Lewis Vice President Investor Relations T – (412) 433-6935
E – klewis@uss.com
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