United States Steel Corporation (NYSE:X) completed the acquisition of remaining 50.1% stake in Big River Steel LLC from GCP/BRS Investors, LLC managed by Gcp Metals Investments, Llc, TPG Furnace, L.P., Arkansas Teacher Retirement System and Consolidated Steel Equity Investors, LLC.
January 14, 2021
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United States Steel Corporation (NYSE:X) exercised its call option to acquire remaining 50.1% stake in Big River Steel LLC from GCP/BRS Investors, LLC managed by Gcp Metals Investments, Llc, TPG Furnace, L.P., Arkansas Teacher Retirement System and Consolidated Steel Equity Investors, LLC for approximately $770 million on December 8, 2020. As on December 15, 2020, United States Steel Corporation entered into a call option equity purchase agreement to acquire remaining 50.1% stake in Big River Steel LLC. For consideration, United States Steel will pay at the closing an aggregate amount equal to the class B common purchase price. The consideration will be financed from United States Steel's cash on hand. In order to preserve certain tax benefits related to Big River Steel’s Phase II-A expansion, U. S. Steel will defer the closing of the purchase of a de minimis percentage of the equity in Big River Steel for a limited period. U. S. Steel currently owns 49.9% ownership interest in Big River Steel. Under the transaction, the Big River Steel team will be joining the U. S. Steel family. The transaction is subject to satisfaction of customary closing conditions, including antitrust approval, and is expected to close in the first quarter of 2021. As of January 13, 2021, FTC granted early termination notice. The transaction is expected to be immediately accretive to earnings with the potential for significant synergies to further support long-term value creation. Barclays PLC, Rothschild & Co and PJT Advisors acted as the financial advisors and Robert Kennedy, Iliana Ongun, Fiona Schaeffer, Michael Bellucci, James Ball, Mike Shah and Max Goodman of of Milbank LLP acted as the legal advisors to United States Steel Corporation. JPMorgan Chase & Co. (NYSE:JPM) acted as financial advisor to Big River Steel LLC. Heartsill Ragon III served as a legal advisor to equity holders.
United States Steel Corporation (NYSE:X) completed the acquisition of remaining 50.1% stake in Big River Steel LLC from GCP/BRS Investors, LLC managed by Gcp Metals Investments, Llc, TPG Furnace, L.P., Arkansas Teacher Retirement System and Consolidated Steel Equity Investors, LLC on January 15, 2021. United States Steel paid $723 million in cash and assumed approximately $50 million in liabilities. U. S. Steel purchased the remaining equity interest in Big River Steel for approximately $625 million in cash net of $36 million and $62 million in cash and restricted cash received, respectively, and the assumption of liabilities of approximately $50 million.
United States Steel Corporation is a steel producer. The Company operates through four segments: North American Flat-Rolled (Flat-Rolled), Mini Mill, U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment is involved in the production of slabs, strip mill plates, sheets and tin mill products, as well as all iron ore, direct reduced grade pellets, pig iron, and coke production facilities in the United States. The Mini Mill segment produces hot-rolled, cold-rolled, coated sheets and electrical steels. The USSE segment produces and sells slabs, strip mill plate, sheet, tin mill products and spiral welded pipe. The Tubular segment produces and sells rounds, seamless and electric resistance welded (ERW) steel casing and tubing (OCTG), and standard and line pipe and mechanical tubing. It serves the automotive, construction, appliance, energy, container, and packaging industries with high value-added steel products such as its XG3 advanced high-strength steel.
United States Steel Corporation (NYSE: X) completed the acquisition of remaining 50.1% stake in Big River Steel LLC from GCP/BRS Investors, LLC managed by Gcp Metals Investments, Llc, TPG Furnace, L.P., Arkansas Teacher Retirement System and Consolidated Steel Equity Investors, LLC.