Nippon Steel aims to close the deal with US Steel in September

Japanese steelmaker Nippon Steel is on track to complete its planned acquisition of US Steel by the end of September this year. The company has intensified negotiations with key stakeholders, including trade unions. This was stated by Nippon Steel Executive Vice President Takahiro Mori, The Japan Times reports.

The deal has drawn criticism from some US lawmakers and the influential United Steelworkers (USW) trade union. In addition, former U.S. President Donald Trump said he would “instantly” block it if he wins the November election.

In January, Mori met with members of the US Congress to discuss how the planned takeover would be beneficial to all parties.

«I don’t think they can block a project that is important to both sides, beneficial to related industries and both countries, simply for political reasons,» the Nippon Steel executive vice president said at a press conference on February 7.

He added that the company has hired American lobbyists.

Nippon Steel is seeking approval from the USW, emphasizing that the deal will strengthen the US company’s profitability and finances, leading to stable employment. According to Mori, the shareholders’ meeting of US Steel, which may become a division of the Japanese steel company, may be held in late March. Around that time, Nippon Steel wants to reach an agreement with the union.

Both parties are also seeking regulatory approval in the US and other jurisdictions. If one of them terminates the agreement, it will be obliged to pay a $565 million fine to the other.

As GMK Center reported earlier, three of Japan’s largest banks – Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Mizuho Financial Group – plan to provide Nippon Steel with a loan totaling $16 billion for the planned acquisition of the American steelmaker. Bloomberg reported that the loan term will be one year. The Japanese steelmaker is expected to issue bonds and new shares to raise funds after the acquisition is completed.