Nippon Steel has announced it will not import steel from its international mills to the U.S. as part of its strategy to secure its $14.9 billion acquisition of U.S. Steel. This decision comes amid concerns from the United Steelworkers union and the incoming Biden administration.
Strategic Move:
Executive Vice President Takahiro Mori communicated this in a letter to United Steelworkers union members, emphasizing the company’s commitment to closing the deal by the end of the year, before President-elect Donald Trump takes office.
Commitments to U.S. Steel:
Nippon Steel has pledged investments in U.S. Steel and job security assurances for the United Steelworkers union. The company has also offered to divest a stake in a U.S. steel plant joint venture if the acquisition proceeds successfully.
Union Relations:
Mori addressed concerns raised by union leaders, including USW President David McCall, stating that the company is informing rather than negotiating. He has requested a meeting with McCall, awaiting a response.
Previous Arbitration Ruling:
In September, an arbitration board ruled in favor of the deal, but the union opposed the decision.
Upcoming U.S. Visit:
Mori is scheduled to visit the U.S. next week, where he will meet with steelworkers in Pittsburgh and visit New York and Washington.
Regulatory Review:
The Committee on Foreign Investment in the United States has extended its review of the acquisition until the end of December, adding urgency to Nippon Steel’s efforts.