Nippon Steel, a leading steel manufacturer in Japan, said on Monday (December 18) that it would acquire U.S. Steel for US$14.9 billion in cash, with an aim to strengthen the company's position in the growing US market amid decreasing steel demand in the domestic market and the booming electric vehicle industry.

According to statistics from the World Steel Association, Nippon Steel's crude steel production ranked fourth in the world last year, with 44.37 million tons, and U.S. Steel ranked 27th. After the acquisition, Nippon Steel's crude steel production would rank third in the world.

With the acquisition, Nippon Steel's annual crude steel production capacity would be increased to 86 million tons from the current 66 million tons. This deal will also ensure a more stable material supply for Nippon Steel.