Nippon Steel NISTF executives have traveled to Pennsylvania to garner support for their $15 billion acquisition bid for U.S. Steel X. The Japanese steel giant is encountering political resistance in Washington.
What Happened: Takahiro Mori, vice-chair of Nippon Steel, arrived in Pittsburgh on Saturday to advocate for the acquisition. The deal faces opposition from both President Joe Biden and President-elect Donald Trump, who prefer U.S. Steel to remain under American ownership, the Financial Times reported on Tuesday.
Despite these political challenges, Nippon Steel is seeking regulatory approval post-election. Mori is scheduled to meet with government officials in Washington later this week.
Mori is also engaging with U.S. Steel workers this week, particularly those in the United Steelworkers union. Some union members have expressed support for the deal, differing from USW president David McCall, who opposes Nippon’s ownership.
Nippon Steel has committed to investing nearly $3 billion in U.S. facilities. The Committee on Foreign Investment in the U.S. has granted Nippon a 90-day extension to address national security concerns, with a final decision anticipated by the end of the year.
Why It Matters: The acquisition of U.S. Steel by Nippon Steel has been a contentious issue, with significant political and economic implications. Nippon Steel remains optimistic about finalizing the deal by year-end, despite facing opposition from the Biden administration and President-elect Trump, who plans to block the acquisition.
The deal is seen as a potential boost for the U.S. economy by creating jobs and increasing competitiveness against China’s steel industry. However, the United Steelworkers union opposes the deal, citing job security concerns for its members.
In October, U.S. Steel reported better-than-expected third-quarter results, with earnings of 56 cents per share, surpassing analyst expectations. The company expressed its intention to close the deal with Nippon Steel by the end of the year.
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