Japan’s Nippon Steel is pushing forward with its planned purchase of U.S. Steel, despite facing resistance from various stakeholders. Vice Chairman Takahiro Mori is set to travel to the United States next week to engage in dialogues with key players involved in the deal. This visit is part of continued efforts to gain a better understanding and secure support for the acquisition.
In December, Nippon Steel made a nearly $15 billion offer to acquire U.S. Steel, a move that was met with opposition from Democratic President Joe Biden, Republican former President Donald Trump, and the United Steelworkers union. To appease concerns and win support, Nippon Steel has pledged to relocate its U.S. headquarters to Pittsburgh, Pennsylvania, where U.S. Steel is based. Additionally, the company has made commitments regarding job security and further investments in the region if the deal goes through.
Mori is expected to visit Pittsburgh next week to meet with local staff and elected officials, in a bid to address any concerns and gather support for the acquisition. The Japanese steelmaker originally aimed to close the deal in the second to third quarter of 2024, but due to regulatory scrutiny, the timeline has been extended to the second half of 2024. The U.S. Department of Justice has requested additional details and materials for an antitrust review, causing delays in the process. On the other hand, the European Commission has already given its approval for the deal, signaling progress on that front.
Despite facing opposition, a majority of U.S. Steel shareholders voted in favor of the deal in April, indicating a level of confidence in the potential benefits of the acquisition. This vote of confidence from shareholders is crucial as Nippon Steel navigates through the challenges and hurdles in completing the acquisition of U.S. Steel.
Nippon Steel’s vice chairman’s upcoming visit to the United States underscores the company’s commitment to seeing the deal through. By actively engaging with stakeholders, addressing concerns, and seeking support, Nippon Steel aims to successfully complete the acquisition of U.S. Steel and make significant strides in its global expansion strategy.