Andrew Carnegie sold his steel company, Carnegie Steel Company, to J.P. Morgan in 1901. This was one of the largest deals of the time, an acquisition worth $500 million, resulting in the creation of U.S. Steel Corporation.

As for the advisor who assisted Andrew Carnegie in the sale, his name was Charles M. Schwab. Schwab played a crucial role in the negotiation and was one of the key executives of Carnegie Steel. Charles M. Schwab presented a vertical consolidation strategy to J.P. Morgan and other investors interested in purchasing Carnegie Steel Company. He argued that by acquiring not only Carnegie Steel but also other competing companies and suppliers along the distribution chain, the new entity could better control costs, increase efficiency, and eliminate competition. This approach would allow the company to maximize its profits and significantly increase its value.

This vertical consolidation strategy was successfully implemented. The company increased its value several times over after the consolidation. Morgan not only provided the necessary financial resources but also used his influence to bring together various steel and iron companies under a single conglomerate, forming U.S. Steel Corporation. This merger resulted in the world’s first corporation to be worth over $1 billion. Morgan’s strategy was based on consolidation and efficiency, allowing U.S. Steel to dominate the market and significantly increase its value.