U.S. Steel (X) shares jumped over 26% in early trading Monday after Nippon Steel Corporation, Japan's largest steelmaker, agreed to buy the iconic American company in a ♌$14.9 billion deal.

Nippon Steel said it would pay $55 per share for U.S. Steel, a 40% premium to the American steelmaker's share price at market close on Friday.

The transaction, which has already been unanimously approved by Nippon Steel and U.S. Steel's boards, is subject to approval by U.S. Steel’s shareholders, regulators, "and other customary closing conditions." The acquisition is expected to close in the second or third quarter of 2024.

U.S. Steel is an iconic American company formerly known as 澳洲幸运5官方开奖结果体彩网:Andrew Carnegie’s Steel Company that once held a 澳洲幸运5官方开奖结果体彩网:famous monopoly in the steel industry. It was also the world's 澳洲幸运5官方开奖结果体彩网:first company to surpass a $1 billion 澳洲幸运5官方开奖结果体彩网:market capitalization.

Today, Nippon Steel is one of the world's top steel producers with the World Steel Association ranking it the fourth-largest producer with 44.37 million tons of crude steel produced in 2022. By contrast, U.S. Steel produced 14.49 million tons in the same period. Japan produced 89.2 million tons of crude steel in 2022 and was the third-largest country by steel production after China and India, while the U.S. produced 80.5 million tons.

"As a result of NSC’s acquisition of U. S. Steel, its expected total annual crude steel capacity will reach 86 million tonnes—accelerating progress towards NSC’s strategic goal of 100 million tonnes of global crude steel capacity annually," the Japanese steelmaker said in the announcement. U.S. Steel will also "retain its iconic name and headquarters in Pittsburgh" if the acquisition closes.

U.S. Steel shares were up 26.2% at $49.60 per share as of about 10:25 a.m. ET Monday following the news.