PARIS (Reuters) – ArcelorMittal made progress on the stock market late Monday afternoon, after the Japanese group Nippon Steel won the auction to buy US Steel, a process in which ArcelorMittal also participated.
At 4:00 p.m. GMT, ArcelorMittal rose 4.97%, compared to a drop of 0.51% for the CAC 40.
Nippon Steel’s offer was chosen by the American group, which launched an auction process in August 2023 after Cleveland-Cliffs offered to buy it for $35 per share. The Nippon Steel buyout will total $14.9 billion in cash, or a price of $55 per share. US Steel shares jumped 26.42% to $49.72 on Monday on the New York Stock Exchange.
Reuters had revealed that ArcelorMittal, the world’s second-largest steelmaker, had also applied for the auction process in August. In mid-December, CNBC indicated that ArcelorMittal’s offer was around $45 per share.
ArcelorMittal’s US production base has been limited since the group sold most of its US operations to Cleveland-Cliffs in 2020 for $1.4 billion.
On Monday, before the announcement of the decision, Oddo BHF had maintained its outlook on the stock at “outperform” and slightly raised its price target, from 33 euros to 34 euros.
“For several weeks, ArcelorMittal has benefited from a more buoyant market environment with rising prices in most regions,” explains the group in a note, which also anticipates positive cash flow in the fourth quarter, despite pressure on the margins.
(Written by Corentin Chappron, edited by Blandine Hénault)
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