Nippon Steel’s proposal to acquire US Steel has garnered support in the areas of the United States where steel mills are located, according to Nippon Steel President Tadashi Imai, Reuters reports.
Speaking to reporters on Wednesday, Imai emphasized that there is significant backing for the $15 billion acquisition, particularly in regions with steel industry operations.
The deal is currently under review by the US government, with the Committee on Foreign Investment in the United States (CFIUS) having referred the decision to President Joe Biden. Biden has 15 days to make a final ruling. Both Biden and his incoming successor, Donald Trump, have previously voiced opposition to the deal. Despite this, Imai remains hopeful that President Biden will recognize the potential benefits of the acquisition for the US economy.
To address national security concerns, Nippon Steel has made several commitments, including pledges to safeguard US jobs and ensure that steel imports will not be used as part of the acquisition strategy. The company has also emphasized its intention to invest in US facilities and maintain the long-term viability of US Steel operations.
In addition to the support from regional communities, Nippon Steel recently shared a letter with President Biden, signed by two dozen local officials from areas where US Steel mills are located. The letter urges Biden to approve the takeover, stressing the importance of the deal to the economic security of workers and the steel industry in those regions.
However, the acquisition has also faced opposition from the United Steelworkers (USW) labor union, which has raised concerns about Nippon Steel’s long-term commitment to the US steel industry. The USW has called for the company to remain domestically owned, citing fears for the future of US Steel plants and blast furnace operations.
Both companies had initially planned to finalize the deal by the end of 2024. With the final decision now resting with President Biden, the outcome of this acquisition remains uncertain, though the support from local communities and the company’s pledges may influence the final ruling.
