United States Steel Corporation has closed its acquisition of the remaining equity of Big River Steel for approximately USD 774 million from cash on hand. The transaction met customary closing conditions, including antitrust approval from the United States Department of Justice.
Big River Steel is a LEED certified Flex Mill in northeast Arkansas that is believed to be the newest and most advanced flat rolled mill in North America. Big River Steel’s advanced manufacturing technology and skilled operators combined with US Steel’s product development capabilities and intellectual property have allowed Big River Steel to produce 14 advanced US Steel grades, including substrate for its XG3 grade of Generation 3 advanced high strength steel. Big River Steel’s Phase II A expansion doubled the mill’s hot-rolled steel production capacity to 3.3 million tons annually, establishing it as one of the largest electric arc furnace-oriented flat-rolled mills in North America. The Phase II A expansion was completed in November 2020, ahead of schedule and below budget.
Barclays served as exclusive M&A financial advisor, while PJT Partners and Rothschild & Co served as financing advisors to US Steel on the acquisition, and Milbank LLP provided legal counsel.