United States Steel Company agreed to acquire the remaining 50.1% stake in Big River Steel LLC for $ 774 million, giving the steel manufacturer ownership of one of the newest and most advanced steel plants in the country.
Owned by Osceola Mill, Ark. , Big River’s will give US Steel access to the same production process used by competitors Nucor Corp and Steel Dynamics Inc. , And they are two of the most profitable companies in the world. Domestic steel industry. The company said the acquisition is the focus of its business Motivation to increase profit By investing in electric furnaces that melted scrap, which are known in the steel industry as smelting machines.
US Steel It bought a 49.9% stake in Big River In October 2019 for $ 700 million, with the option to acquire the rest of the company within four years. A person familiar with the matter said the rise in steel prices in recent months has helped US Steel raise enough cash to complete the purchase sooner than expected.
The spot market price for rolled steel sheet in the US rose to $ 856 per ton on Monday from below $ 500 per ton this summer, as the recovery in the manufacturing sector spurred an increase in orders. “The timing is just right for us,” said David Burrett, chief executive of American Steel, during a conference call on Tuesday.
Shares were up 7.8% to $ 18.55 in morning trade.