Nippon Steel Confident It Can Close Widely Opposed US Deal
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Nippon Steel Corp. reiterated confidence that its $14.1 billion acquisition of United States Steel Corp. can be completed by year-end, even as the current and incoming U.S. presidents oppose the takeover.
The deal can be completed if it passes due process and is approved by the outgoing administration of President Joe Biden, said Takahiro Mori, vice president of Japan’s Nippon Steel. Mori signaled the same confidence about timing of a potential takeover last month.
Almost a year after Nippon Steel announced its takeover plan, hefty political hurdles remain. President-elect Donald Trump this week repeated his opposition to the sale of U.S. Steel, saying he would use tariffs and tax incentives to revitalize the American steelmaker.
Other lawmakers and union leadership are also against the transaction, but some union members, business groups and political figures have expressed support for a deal, saying it will benefit the local economy and jobs.
In an interview with Pittsburgh’s @WTAE, #USSteel President & CEO Dave Burritt outlined why a deal with Nippon Steel will be transformative for employees, their families, and the communities where U. S. Steel operates. #BestDealForAmericanSteel WATCH 🎥: https://t.co/zLXdquXwDX pic.twitter.com/FIN0fTHuhT — U. S. Steel (@U_S_Steel) November 22, 2024
Mori said he was met with positive feedback from the local community during his visit last month to the U.S., declining to elaborate on the details of meetings held with stakeholders, citing confidentiality.
“There was more momentum among local communities for the deal versus when we first started the talks,” he said in an interview on Dec. 3.
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The deal is currently under review by the Committee on Foreign Investment in the United States, known as Cfius, a secretive panel that scrutinizes proposals by foreign entities to purchase companies or properties in the U.S.
The panel granted an extension to the review, which effectively pushed the decision on the acquisition to after the November presidential election. The takeover must go to Biden this month unless another delay is approved.
Separately, Mori said Japan needs to take tougher measures, such as tariffs, on the export of excess steel supply from China. A Japanese trade ministry official said in September that it’s in the process of broadening the scope of anti-dumping duties to cover Chinese steel among other products.
