TOKYO (Reuters) – Nippon Steel shares sank nearly 5% early on Tuesday after it clinched a deal to buy U.S. Steel for $14.9 billion in cash.
The shares were trading around 3,085 yen, down 4.7% from Monday’s close, after being untraded with a glut of sellers after the open.
The acquisition of U.S. Steel, which prevailed in an auction for the steel giant over rivals including Cleveland-Cliffs, will help Nippon Steel move toward 100 million metric tons of global crude steel capacity.
The Japanese company has not given any projection on the value of the synergies that will arise from the deal, but it is scheduled to hold a media briefing on Tuesday morning where the company’s president is expected to appear.
(Reporting by Mariko Katsumura; Editing by Jacqueline Wong)
