Nippon Steel’s Vice Chairman Takahiro Mori is planning to return to the United States this week for more talks regarding the proposed $14.9 billion acquisition of U.S. Steel. The visit comes just weeks after Mori’s previous trip to the U.S. from May 20-26, highlighting the company’s efforts to close the deal amid growing regulatory scrutiny and political opposition.
The proposed acquisition would give Nippon Steel greater access to the lucrative U.S. market and further its long-term financial goals. However, the deal faces resistance from President Joe Biden, who wants U.S. Steel to remain domestically owned, as well as objections from the powerful United Steelworkers (USW) union over fears of job losses.
Despite these challenges, Nippon Steel has received all regulatory approvals outside of the United States for the merger. During his previous trip, Mori met with business and political leaders, including four U.S. senators, as well as community leaders in Pennsylvania, where U.S. Steel is based.
Mori stated that Nippon Steel might consider selling some assets if required by U.S. regulators to approve the deal. However, he downplayed the likelihood of any asset sales, saying, “I do not think this is necessary for this deal’s closure.”
Mori pointed to Nippon Steel’s 2011 takeover of U.S. company Standard Steel as an example of what the U.S. Steel purchase could achieve. He noted that Standard Steel became profitable in 2013 after the deal, and has continued to be successful through technology transfers and the dispatch of highly qualified engineers from Japan.
The proposed acquisition of U.S. Steel is a crucial step for Nippon Steel as it seeks to expand its presence in the lucrative U.S. market. The company’s efforts to navigate the regulatory and political landscape in the United States will be closely watched in the coming weeks.