The latest development in the ongoing Nippon Steel NPSCY acquisition controversy sees the company disclosing its discussions with the United Steelworkers union. The disclosure aims to clarify what the company refers to as “public mischaracterizations” of their dialogues to date.
What Happened: On Wednesday, Nippon Steel shared details of its discussions with the United Steelworkers union regarding its proposed acquisition of U.S. Steel X, Nikkei Asia reported on Thursday.
The Japanese steelmaker has engaged with the USW leadership 32 times, through face-to-face meetings, emails, and phone calls. Nippon Steel revealed that the USW circulated a pre-prepared press release to its members immediately after a meeting on Mar. 7, asserting that “no progress had been made”.
In a subsequent meeting in July, USW leadership committed to providing a list of issues that needed resolution for the deal to move forward. However, when Nippon Steel Vice Chairman Takahiro Mori expressed his gratitude to USW President David McCall via email, McCall responded with a “compilation of the USW’s prior press releases, condemning the transaction”.
Why It Matters: The USW, boasting 850,000 members, has consistently opposed Nippon Steel’s plans. The union’s influence in key states could potentially impact the outcome of the U.S. presidential election in November.
Both U.S. Vice President Kamala Harris and former President Donald Trump have voiced concerns over the proposed takeover. Reports suggest that U.S. President Joe Biden is preparing to block the deal. This comes after Harris’s assertion that U.S. Steel should remain "American-owned" and Biden’s push to block the $14.1 billion takeover.
Read Next:
Image by Poetra.RH via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
