Nippon Steel Says Global Push Justifies 142% US Deal Premium (2)

Nippon Steel Corp. has defended the whopping 142% premium it’s paying for United States Steel Corp., as the Japanese company seeks to reinforce its position as a global titan, using expansion abroad to counter a weak domestic outlook.

The $14.1 billion acquisition, announced on Monday, creates the world’s second-biggest steel producer with plants stretching from Slovakia to Osaka and Pennsylvania. But it came as a surprise — the Japanese bidder hadn’t previously been considered a front runner, and the offer is more than double the level US Steel shares were trading at before it announced unsolicited proposals and a ...