US Steel CEO Confident Nippon Deal Will Succeed Despite Biden Opposition: 'We Live By A Code'

United States Steel Corporation X CEO David Burritt says he is confident that the company's potential merger with Japan's Nippon steal will go through, despite the Biden administration’s opposition to the deal. In a speech to the Detroit Economic Club Tuesday, Burritt said that the acquisition would be good for both shareholders and employees.

Nippon and U.S. Steel announced the planned acquisition in December 2023. The U.S. Department of Justice opened up an antitrust investigation into the deal a few months later in April.

U.S. Steel was once the country's largest company and the first to be valued at $1 billion, back in 1901. More than 100 years later, the company has a market cap of around $8 billion. President Joe Biden and former President Donald Trump have both come out against the acquisition.

​​The deal values U.S. Steel at $55 per share, or around $14.9 billion—a large premium compared to its current trading price of $35. The market, however, appears skeptical about whether the deal will be approved, given the strong political resistance.

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Members of Biden's team have said that the administration is against the deal because of national security and supply chain concerns. But Burritt argues that U.S. Steel teaming up with Japan's Nippon gives the U.S. a better chance to compete with China, which he calls the “beast in the industry.”

The Committee on Foreign Investment in the United States (CFIUS) is anticipated to play a key role in evaluating the acquisition. Burritt expressed confidence in the deal's ability to pass CFIUS scrutiny, emphasizing that the review process is rigorous and stating that the deal's merits would ultimately ensure its approval.

“I know it's getting scrutiny, but this deal will close on its merits. We live by a code and expect others to do the same,” Burritt said

The decision on the acquisition could come after November’s presidential election. Biden, Trump and the Democratic nominee Vice President Kamala Harris all have spoken out against Nippon’s potential acquisition of U.S. Steel.

If the deal does go through at $55 a share, it would represent a more than 50% increase from the stock’s current levels.

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