Steel Mills
October 1, 2019
U.S. Steel Takes First Step in Acquisition of Big River Steel
Written by Sandy Williams
U.S. Steel announced today it will acquire a 49.9 percent ownership interest in Big River Steel at a purchase price of $700 million with the intent to acquire the remaining shares within the next four years.
U.S. Steel has committed financing to execute the transaction. The implied enterprise value of Big River is approximately $2.325 billion and includes the fully-funded and under construction Phase IIA expansion. The agreement builds in options for Big River Steel’s original owners related to the future ownership makeup of Big River Steel if U.S. Steel chooses not to exercise its option. U.S Steel President and CEO David Burritt emphasized during a conference call Tuesday morning that his company fully intends to complete the total acquisition of BRS.
