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October 31, 2019

Milbank Advises U. S. Steel on Strategic Investment in Big River Steel

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Milbank LLP advised United States Steel Corporation (NYSE: X) (“U. S. Steel”) in connection with its acquisition of a 49.9% ownership interest in Big River Steel (“Big River”) for approximately $700 million, which implies an enterprise value of $2.325 billion.

The transaction includes a call option that gives U. S. Steel the right to acquire the remaining 50.1% of Big River within four years at an agreed-upon price formula. Big River will continue to operate independently until that time. KM BRS, LLC (a subsidiary of Koch Minerals, LLC) and TPG Furnace, L.P. (an affiliate of TPG Growth) remain preferred equity holders of Big River along with the majority ownership position held by company management and the Arkansas Teacher Retirement System.

U. S. Steel, headquartered in Pittsburgh, Pennsylvania, is a leading integrated steel producer and Fortune 250 company with major operations in the United States and Central Europe.

The Milbank team representing U. S. Steel was led by Global Corporate partner Bob Kennedy, with special counsel Iliana Ongun and associates Lorin Kolcun and Hannah Hwang; Antitrust partner Fiona Schaeffer; Leveraged Finance partner Michael Bellucci; Capital Markets partners James Ball and Brett Nadritch; Executive Compensation and Employee Benefits partner Mike Shah; Tax partner Max Goodman; Environmental partner Matt Ahrens; Employment counsel Jane Hanson; and associates Catherine Chong, Christopher Kwan, James Beebe, Christina Skaliks and David Hanno.

Mr. Kennedy said: “We are pleased to have worked with U. S. Steel in this milestone transaction for the company which will expand its global reach and further solidify its place in the steel market.”