Steel Products

U.S. Steel to Acquire 49.9% Ownership in Big River Steel

October 1, 2019

U.S. Steel announced today a joint venture partnership agreement under which it has taken the first step towards acquiring Big River Steel through the purchase of a 49.9 percent ownership interest at a purchase price of approximately $700 million in cash, with a call option to acquire the remaining 50.1 percent within the next four years.

U.S. Steel has committed financing to execute the transaction. The implied enterprise value of Big River, including the expected completion of its Phase II-A expansion, which is fully funded and already under construction, is approximately $2.325 billion. Big River Steel’s original owners will hold certain options related to the future ownership make up of Big River Steel should U. S. Steel choose not to exercise its option.

“Our new partnership with Big River is designed to accelerate our strategy to offer our customers the ‘best of both’ by bringing together the capabilities of integrated and mini mill steel production,” said U.S Steel President and CEO David B. Burritt.

Closing of the transaction is anticipated on October 31, 2019, subject to satisfaction of customary closing conditions.