News Companies Nippon Steel 965 05 December 2024
The agreement can be completed if the necessary procedures are completed
Japanese steelmaker Nippon Steel has reiterated its confidence that the acquisition of US steelmaker US Steel can be completed by the end of this year, even though the current and future US presidents are opposed to the takeover. This is reported by Bloomberg.
The deal can be completed if it goes through the proper procedures and is approved by the outgoing administration of Joe Biden, said Takahiro Mori, Vice President of Nippon Steel. In November, he made the same point about the timing of a potential takeover.
Almost a year after Nippon Steel announced its plan to acquire US Steel, serious political obstacles to the deal remain. In early December, President-elect Donald Trump reiterated his opposition to the sale, saying that he would instead use tariffs and tax breaks to revive the American steelmaker.
A number of lawmakers and the influential United Steelworkers union also oppose the deal, but some union members, business groups and political figures have voiced support for it, saying it will benefit local economies and jobs.
With the help of US Steel, Nippon Steel aims to increase its global steel production capacity to 85 million tons per year from the current 65 million tons, and to more than 100 million tons in the long term.
In a statement on December 3, following Trump’s comments, Nippon Steel said it would invest at least $2.7 billion in US Steel’s union facilities, provide jobs for unions and spread technological innovation.
“Nippon Steel is committed to protecting and developing US Steel in a way that strengthens American industry, the resilience of the domestic supply chain and US national security,” the company said in a statement.
As Reuters reported, Japanese Prime Minister Shigeru Ishiba sent a letter to US President Joe Biden asking him to approve the deal between Nippon Steel and US Steel so as not to harm recent efforts to strengthen ties between the two countries. The US Committee on Foreign Investment in the United States (CFIUS) is expected to make a decision on the matter in December this year. It may approve the deal with conditions to mitigate security concerns, recommend blocking it, or continue the review process.
