U.S. Steel Gets Option for National Steel Stake

U.S. Steel Corp. got the option to buy a majority stake in National Steel Corp. from a Japanese company as part of its plan to create one of the largest steel companies in the world.

U.S. Steel, the biggest U.S. steelmaker, can buy as much as 53% of Mishawaka, Ind.-based National Steel from Tokyo-based NKK Corp. under the agreement that expires June 15. In return, NKK would have the right to buy 4 million shares, or 4.5%, of U.S. Steel.

If U.S. Steel exercises the option to buy NKK’s shares, it also would offer to exchange each remaining National Steel share for 0.086 of a U.S. Steel share. That values a National Steel share at $1.52, based on the $17.70 closing price for U.S. Steel on Wednesday.

Shares of Pittsburgh-based U.S. Steel rose 61 cents to $18.31 on the NYSE.