U. S. Steel to Acquire National Steel Assets

United States Steel Corporation has signed an Asset Purchase Agreement with National Steel Corp. to acquire substantially all of National's steelmaking and finishing assets for about $950 million, which includes the assumption of liabilities of approximately $200 million. With these assets, U. S. Steel will have total annual raw steel production capability of approximately 25 million tons, making it the fifth largest steelmaker in the world.

The transaction, which is targeted for completion early in the second quarter of 2003, is contingent on the successful negotiation of a new labor contract with the United Steelworkers of America, the approval of the bankruptcy court and other customary regulatory approvals.

"The acquisition of these assets will be a significant step forward in our strategy to grow profitably and to strengthen our position as a leading global provider of high value-added steel products," said U. S. Steel Chairman Thomas J. Usher. "From the onset, the acquisition will enhance our ability to serve the current and future needs of our North American customers in key industries such as automotive, container, appliance and construction, while building upon our existing leadership position in these markets.