Nippon Steel is ramping up efforts to secure approval for its proposed $15 billion acquisition of United States Steel Corp., with top executives traveling to the US to engage stakeholders and counter opposition.
The deal, which has faced bipartisan resistance in Washington due to its implications for a storied American company in a politically significant state, is under scrutiny by regulators and union leaders.
Takahiro Mori, vice-chair of Nippon Steel, arrived in Pittsburgh—the headquarters of US Steel—over the weekend to meet local officials, workers, and union members. His visit is part of a broader strategy to build grassroots support for the acquisition, which could be decided before the end of the year. Mori is also scheduled to travel to Washington to meet with federal officials and push for regulatory approval following a 90-day extension granted by the Committee on Foreign Investment in the United States (CFIUS).
Unionized steelworkers have emerged as a critical audience for Mori’s outreach. While the leadership of the United Steelworkers (USW) union, including President David McCall, has strongly opposed the deal, some rank-and-file members are beginning to voice support. Mori has emphasized Nippon Steel’s commitments to job security, promising no layoffs, and pledging to invest nearly $3 billion to upgrade US Steel facilities.
In a letter sent to workers, Mori addressed concerns about misinformation surrounding the transaction.
“Our commitments are about protecting and growing US Steel and transforming its facilities so they can be around for the next generation,” he wrote.
Mori reiterated that the company would not import steel slabs from overseas or diminish US Steel’s production capacity.
Union leadership has criticized these efforts, accusing Nippon Steel of trying to sow discord among workers. McCall and other union leaders have argued that the company’s promises lack enforceable guarantees and warned that foreign ownership could undermine the domestic steel industry over time.
The acquisition faces significant political obstacles. President Joe Biden and former President Donald Trump have both expressed opposition to the deal, citing national security and economic concerns. With Pennsylvania—a key swing state—at the heart of the controversy, Nippon Steel is seeking to alleviate fears by framing the deal as a long-term investment in the US economy.
The acquisition appeared to be in jeopardy earlier this year when CFIUS raised concerns about national security risks. However, these concerns were not formally relayed to President Biden, and the review process continues.
The $15 billion deal represents Nippon Steel’s ambition to expand its footprint in the US market while modernizing US Steel’s operations. US Steel’s shares, trading at $38.01 as of Monday, remain well below Nippon’s offer price of $55, reflecting uncertainty about the transaction’s approval.
The Financial Times and Bloomberg contributed to this report.
