United States Steel Corporation (U.S. Steel) has completed its $774 million cash acquisition of Osceola-based Big River Steel.
U.S. Steel first announced its acquisition plans in December 2020. The acquisition was finalized on Friday, Jan. 15. Previously, U.S. Steel had paid $700 million to acquire 49.9 percent of Big River Steel in October 2019.
According to company officials, the acquisition of Big River Steel is intended to combine U.S. Steel’s research development capabilities with Big River’s technological capabilities.
“We are creating the first ‘Best of Both’ integrated and mini mill steel company. Taking a page from the Big River Steel playbook, we are closing on this world competitive green steel asset purchase under budget and ahead of schedule,” U. S. Steel president and chief executive officer David Burritt said in a statement. “Our customers now have access to a truly sustainable source of the most advanced high strength steels. Our customer-centric organization will provide customers, employees, communities and investors with the world competitive advantages from the most advanced process technology and the intellectual capital necessary to produce the most advanced products.”
In November 2020, Big River Steel launched a second-phase expansion, bringing a second electric arc furnace, ladle metallurgical station, thin-slab continuous caster, tunnel furnace and hot mill downcoiler online. The new expansion is projected to increase Big River Steel’s production capacity to 5,000 tons of steel per employee from 3,000 tons of steel per employee – an increase of 66 percent.
The transaction met regulatory and antitrust requirements and was approved by the U.S. Department of Justice, according to a company news release.
U.S. Steel executives will be discussing the Big River acquisition during a 2020 earnings conference call on Jan. 29, 2021 at 8:30 a.m. EST.