-=U.S. Steel (X) acquires 49.9% ownership interest in Big River Steel

U.S. Steel acquires 49.9% ownership interest in Big River Steel for approximately $700 mln in cash 

The co announced a joint venture partnership agreement under which it has taken the first step towards acquiring Big River Steel ("Big River") through the purchase of a 49.9% ownership interest at a purchase price of approximately $700 million in cash, with a call option to acquire the remaining 50.1% 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.

• This transaction minimizes the risk of operational and financial execution while maximizing the potential for value creation. This transaction provides numerous strategic and financial benefits to U. S. Steel, some of which will begin to be implemented immediately upon the closing of this transaction, while others would become fully realized upon full ownership of Big River.