Nippon Steel (NPSCY) remains confident that its acquisition of U.S. Steel (X, Financial) will be completed by the end of the year. Despite political challenges following the U.S. elections, Nippon Steel aims for constructive discussions about the deal. The company plans to strengthen its position in the U.S. market and bolster its global stature with this $14.9 billion all-cash acquisition at $55 per share, enhancing its global steel production capacity to 100 million tons.
The acquisition has faced persistent hurdles, encountering resistance from the Biden administration, the United Steelworkers union (USW), and opposition from former President Trump. Concerns have been raised about foreign ownership of U.S. Steel, a key provider for critical infrastructure projects, and the potential impact on employment. The Committee on Foreign Investment in the United States (CFIUS) has delayed its review of the transaction until after the elections.
Nippon Steel asserts that the acquisition will benefit the U.S. economy and employment, aligning with competitive policies against other steel manufacturers. The company commits to investing billions in U.S. Steel and promises not to transfer any capacity or jobs overseas. Additionally, Nippon Steel vows not to interfere with U.S. Steel's trade decisions, including actions against unfair trade practices under U.S. law.
