A senior executive from Nippon Steel is scheduled to meet with the United Steelworkers (USW) union chief this month to garner support for the acquisition of U.S. Steel, aiming to finalize the $14.9 billion deal by the end of September. The merger, aimed at bolstering the world’s fourth-largest steelmaker, has faced criticism from lawmakers concerned about national security implications, despite the close alliance between the U.S. and Japan.
Executive Vice President Takahiro Mori expressed confidence in addressing contractual issues and maintaining existing agreements between the union and U.S. Steel, emphasizing Nippon Steel’s commitment to upholding these arrangements. The upcoming discussions aim to address concerns regarding job security and operational continuity.
Nippon Steel is optimistic about enhancing U.S. Steel’s operations without resorting to job cuts or plant closures by leveraging advanced technologies, particularly in high-grade electromagnetic steel sheets used in electric vehicles. The company believes these innovations could revolutionize the U.S. market and contribute to the growth of the American steel industry.
Amidst political considerations and shareholder approval processes, Nippon Steel aims to secure backing from the USW by early April, aligning with U.S. Steel’s shareholder meeting timeline. The executive remains confident in winning shareholder approval, highlighting the positive impact of the acquisition on the steel industry, customers like automakers, and national security interests.
Additionally, Mori emphasized the potential repercussions of a failed deal on Japanese investment sentiment in the U.S., warning of adverse effects on future acquisitions in strategic sectors and international business relations. The executive underscored the importance of a successful acquisition for both countries’ economic interests and investment climate.