Japan's Nippon Steel is actively pursuing its proposal to acquire U.S. Steel, gaining support from various regions across the United States where the steel mills operate. On Wednesday, Nippon Steel's President Tadashi Imai shared insights with reporters, emphasizing the positive reception from local communities involved. "We hope President Biden understands the value of this acquisition to the U.S. economy," he stated, following the U.S. foreign investment committee's referral of the $15 billion deal to President Joe Biden, who has 15 days to make his ruling.
Imai reassured stakeholders of Nippon Steel’s commitment to addressing any national security concerns raised by the Committee on Foreign Investment in the United States (CFIUS). He described the progress made as encouraging, stating, "There is considerable amount of support for this acquisition" within the communities where U.S. Steel operates. To bolster their position, Nippon Steel previously presented Biden with a letter signed by two dozen municipal officials from regions housing U.S. Steel mills. The letter beseeches the President to heed the voices of steelworkers who are economically tied to U.S. Steel, making the case for approval of the takeover.
Despite these overtures, Nippon Steel’s efforts face opposition from the United Steelworkers (USW) labor union, which has expressed skepticism about the intentions behind the acquisition. According to the USW, discussions with Nippon Steel officials raised concerns over the long-term security of U.S. Steel's domestic operations. The labor union cautioned Biden against allowing the company to divert operations overseas, urging him to maintain the company’s domestic ownership and operation.
According to reports, Nippon Steel has expressed intentions not to utilize the acquisition as leverage for steel imports, promising to secure jobs and invest substantially within U.S. facilities deemed key for expansion. This commitment is notable, especially as Nippon Steel outlined plans to maintain and grow U.S. Steel’s operations post-acquisition.
The timeline for this acquisition has shifted significantly, now moving the expected completion date to early March 2025, revising the earlier projections of late 2024. The decision to push back the timeline followed deliberations within various federal agencies failing to yield consensus. This has left the ultimate decision-making responsibility to President Biden, who must address the matter by the set deadline following the referral
On Thursday, Nippon Steel reiterated its belief in the acquisition's potential to not only protect but also to grow U.S. Steel. "We are confident the deal will be beneficial to the American economy," they stated, emphasizing their commitment to conducting fair evaluations during the acquisition process.
Observers envision this acquisition as pivotal not only for Nippon Steel and U.S. Steel but also for the broader U.S. steel industry, amid conversations on national security and economic integrity. The coming weeks may prove decisive, as stakeholders await Biden's assessment and subsequent decisions.
