Japan’s Nippon Steel Corp is seeing support for its proposal to acquire US Steel Corp in the regions of the US where steel mills are located, Nippon Steel president Tadashi Imai told reporters yesterday.
On Monday, a US inter-agency foreign investment committee referred the decision of whether to approve or block the US$15 billion deal to US President Joe Biden, who has 15 days to decide.
Biden and US president-elect Donald Trump have expressed opposition to the purchase.
Photo: Reuters
Nippon Steel has made a number of commitments to address the national security concerns of the Committee on Foreign Investment in the United States, Imai said, adding that he believed there was “progress in understanding.”
“In the communities of the various regions where the steel mills are located, there is a considerable amount of support for this acquisition,” Imai said. “I hope that President Biden will understand ... the value of this acquisition to the US economy.”
Both companies have previously said they planned to close the deal, which has also faced opposition from the powerful United Steelworkers (USW) labor union, before the end of this year.
Nippon Steel yesterday shared a letter with Biden dated on Monday and signed by two dozen US municipality officials in areas where US Steel mills are located, asking the US president to approve the takeover deal.
“We respectfully urge you to listen to the voices of the steelworkers and everyone else whose economic security is tied to US Steel — they are speaking loudly in unison that this deal must be approved,” the letter said.
USW met Nippon Steel officials twice last week, the union said in a separate statement.
USW repeated its view that the Japanese steelmaker had no interest in the long-term security of US Steel plants or blast furnace operations, and urged Biden to keep the company domestically owned and operated, it said.
To win support for the acquisition, Nippon Steel has previously said it would not use the deal as cover to import steel and has made a series of pledges to protect jobs and invest in US facilities it sees as key to its future growth.
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