The United States Steel Corporation (NYSE:X), widely known as U.S. Steel, is set to be acquired by Nippon Steel, as confirmed by both companies yesterday. Following this announcement, U.S. Steel's shares surged by more than 26% yesterday.

Nippon Steel has agreed to an all-cash acquisition, offering $55 per share, placing U.S. Steel's valuation at approximately $14.1 billion. When considering the debt, the total enterprise value of the deal rises to $14.9 billion.

Eiji Hashimoto, President of Nippon Steel Corporation (NSC), remarked on the acquisition, emphasizing the company's expanding presence in the United States. Hashimoto assured that all existing union contracts with U.S. Steel would be respected and honored. He expressed eagerness to work closely with the U.S. Steel team, aiming to integrate the strengths of both companies.