News Companies Nippon Steel 2225 22 May 2024
The companies exchanged statements regarding the planned sale
US steel companies US Steel and Cleveland-Cliffs entered into a public dispute over the former’s deal with Japanese steelmaker Nippon Steel.
US Steel tried to refute the idea that Nippon Steel was trying to break the $14 billion deal. The steelmaker said that its competitor Cleveland-Cliffs was spreading rumors among investors.
On May 21, US Steel’s board of directors issued a letter in response to the «ongoing disinformation campaign» regarding the deal.
The transaction with Nippon Steel (NSC) was approved after a thorough and lengthy process of reviewing strategic alternatives.
“The transaction delivers significant value for our investors, as was validated by their overwhelming approval on April 12. It also importantly provides job security, growth and opportunity for our employees, our communities and other stakeholders. It’s a clear win-win-win,» the letter says.
The report also notes that the announcement of the investment by the Japanese steelmaker has been attacked from day one by one of its competitors and unsuccessful bidder Cleveland-Cliffs. However, despite the rumors of the deal being scrapped, «nothing could be further from the truth.»
«Both NSC and U. S. Steel remain as fully committed as ever to completing the transaction that will protect and grow U. S. Steel for generations to come, bolster competition and innovation in the American steel industry for the benefit of American consumers and enhance U.S. national security,» the company assured.
Cleveland-Cliffs later responded to the letter, calling the sale of the Pittsburgh company “doomed”.
«We have not done anything that could be called ‘disinformation’. From our first offer to acquire US. Steel to the latest one (which expired on December 15), we have emphasized the need to keep US Steel in American ownership and the full support of the union. Our position has never changed,» said Lorenzo González, Chairman of the Board, President and CEO of Cliffs.
The company pointed out that US Steel’s board, in particular, refuses to recognize that the United Steelworkers union will effectively block the deal by refusing to accept Nippon Steel as the new owner.
As GMK Center reported earlier, the Japanese steelmaker is sticking to its plan to close the deal to buy US Steel by the end of 2024 despite resistance in the United States. Recently, Nippon Steel postponed the deadline from the end of September after the US Department of Justice requested more details and materials as part of the antitrust review. At the same time, the European Commission has already approved the deal.
