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United States Steel Corp Completes Strategic Investment in Big River Steel

Steel News - Published on Mon, 04 Nov 2019

Image Source: stahleisen.de
United States Steel Corporation announced that it has completed its acquisition of a 49.9% ownership interest in Big River Steel for approximately USD 700 million, which implies an enterprise value of USD 2.325 billion. Mr David B Burritt, President and Chief Executive Officer of US Steel, said that “This is a true milestone for our 118-year old company. The closing of our investment in Big River brings us one step closer to creating a differentiated, world-competitive company that can offer our customers, employees and stockholders the ‘best of both’ integrated and mini mill steel making technology. We have done more than make an investment in the newest and most advanced flat-rolled mill in North America … we have invested in the future of U. S. Steel. We are gratified by the positive response we have received from our stakeholders recognizing the strategic rationale of this transaction since we announced it on October 1. We now look forward to executing the next phase of our strategy with our new partners at Big River.”

As announced on October 1, 2019, the transaction includes a call option that gives US Steel the right to acquire the remaining 50.1% of Big River within four years at an agreed-upon price formula. Until that time Big River will operate independently. As previously mentioned, KM BRS LLC, a subsidiary of Koch Minerals LLC, and TPG Furnace LP, an affiliate of TPG Growth, remain preferred equity holders of Big River along with the majority common ownership position held by company management and the Arkansas Teachers Retirement System.

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Posted By : Rabi Wangkhem on Mon, 04 Nov 2019
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