Nippon Steel has defended the whopping premium it’s paying for United States Steel, as the Japanese company seeks to reinforce its position as a global titan amid a weak domestic outlook.
The surprise $14.1 billion acquisition announced Monday would create the world’s second-biggest steel producer with plants stretching from Slovakia to Osaka and Pennsylvania.
The deal represents a 142% premium to U.S. Steel’s share price on the last day of trading before it announced its strategic review, and is nearly double the roughly $7.25 billion offered by fellow U.S. steelmaker Cleveland-Cliffs in August.