Nippon Steel, Japan’s largest steelmaker, is steadfast in its commitment to acquiring U.S. Steel for $15 billion, with plans to finalize the deal by the end of December. This statement comes despite significant opposition from U.S. politicians, including President-elect Donald Trump.
Key Highlights:
Commitment to the Deal:
Vice Chairman Takahiro Mori emphasized, “We will not give up on the deal… There is no global strategy without the U.S.”
Nippon Steel intends to increase its global steel production capacity from 65 million metric tons to 85 million metric tons annually, with long-term goals exceeding 100 million tons.
Political Resistance:
The acquisition has faced strong resistance from various politicians and labor groups, particularly the United Steelworkers (USW).
Trump reiterated his opposition to the deal, expressing concerns over foreign ownership of U.S. steel assets.
Leadership Decisions:
When asked about the future of U.S. Steel’s CEO David Burritt, Mori indicated that the selection of the CEO would involve various candidates, but no final decisions had been made.
Local Support:
Mori noted a “growing support from the local community” during his recent visit to Pittsburgh, where U.S. Steel is headquartered. He highlighted that discussions have shifted to more substantive issues since the conclusion of the U.S. presidential election.
Regulatory Approvals:
Nippon Steel has secured all necessary regulatory approvals outside the U.S. and is currently awaiting reviews from the Committee on Foreign Investment in the United States (CFIUS) and clearance from the U.S. Department of Justice (DOJ) regarding antitrust laws.
Job Security Promises:
The Japanese steelmaker has committed to not transferring any U.S. Steel production capacity or jobs outside the U.S. and will not interfere with U.S. Steel’s trade decisions.
Political Landscape:
As Trump prepares to return to the White House on January 20, he has expressed that U.S. Steel should remain an American-owned company, a sentiment echoed by President Joe Biden.