Nippon Steel

US President expresses concern over foreign ownership of US Steel

Japanese steelmaker Nippon Steel intends to complete the acquisition of US Steel despite the fact that US President Joe Biden has expressed a desire to keep the latter in American ownership. This is reported by Nikkei Asia.

According to a statement released by the Japanese company, the deal will bring clear benefits to US. Steel, labor unions, the US steel industry as a whole and US national security. In addition, Nippon Steel noted that the acquisition will strengthen American supply chains and economic protection from China.

Nippon Steel said that no other American steel company can do this task on its own while complying with antitrust requirements, and that they are the right partner to ensure US Steel’s success for generations to come as an iconic American company.

«We are moving forward with the regulatory review process, including CFIUS, and have confidence in the rule of law, objectivity and due process we expect from the US government. We are determined to follow through and complete the transaction,» the statement said.

The Japanese steelmaker announced that it has committed to the United Steelworkers (USW), which opposes the deal, that there will be no layoffs or plant closures until September 2026 under certain conditions. Nippon Steel also promised that it would invest an additional $1.4 billion after the deal is finalized, increasing the current collective bargaining agreement by more than 140%.

The Japanese company’s announcement comes after US President Joe Biden expressed his desire for US Steel to remain in American ownership.

«US Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company owned and operated by Americans,» Reuters quoted Biden as saying.

However, it is unclear whether the US president will block the takeover. The Committee on Foreign Investment in the United States (CFIUS) has the right to recommend blocking the deal for national security reasons. In December last year, the White House said that the proposed deal deserved serious scrutiny.

As GMK Center reported earlier, last December, it was reported that Nippon Steel Corporation, the largest steel producer in Japan and one of the leading steel producers in the world, would acquire the American steel company United States Steel Corporation at a price of $55 per share, which is approximately $14.9 billion, including debt. This caused criticism from some US lawmakers and the USW.