Deals
U.S. Steel to Buy Remaining Big River Stake Amid Steel Surge
- Purchase comes as company takes advantage of steel price rally
- Pittsburgh-based company rises more than 11% in New York trade
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U.S. Steel Corp. agreed to acquire the remaining stake in Big River Steel for about $774 million to expand into newer and lower-cost operations, taking advantage of a recent 85% rally in the industrial metal.
U.S. Steel is exercising a call option and will use cash on hand to buy the stake, the company said Tuesday in a statement. Chief Executive Officer David Burritt previously said that acquiring the rest of Big River was U.S. Steel’s “top strategic priority,” after the Pittsburgh-based company agreed to purchase 49.9% of the steelmaker last year. Shares were up 11% at 12:08 p.m. in New York and touched the highest level since April 2019.