Nucor Takes Majority Stake In California Steel Industries

Nucor Corp NUE has agreed to acquire a majority stake in California Steel Industries, Inc. (CSI) by purchasing a 50% equity stake from a subsidiary of Vale SA VALE and a 1% equity ownership stake from JFE Steel Corporation (JFE).

• The company will be a joint venture between Nucor and JFE. Nucor will pay $400 million for Vale's 50% enterprise value, approximating less than 6.0x historical average EBITDA.
• CSI is a flat-rolled steel converter capable of producing more than two million tons of finished steel and steel products annually. CSI has over 800 full-time and temporary employees and five product lines.
• "Acquiring a majority ownership stake in California Steel Industries expands our geographic reach in sheet steel and gives us a strong presence on the West Coast," commented Nucor CEO Leon Topalian.
• Nucor had cash and cash equivalents of $2.29 billion as of October 2, 2021.
• Price Action: NUE shares are trading higher by 0.70% at $114.00, VALE higher by 3.25% at $13.96 during the premarket session on Monday.