• Nippon Steel
• US Steel
• USA

NIPPON STEEL STANDS FIRM ON PROPOSED $15 BILLION ACQUISITION OF U.S. STEEL

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  Nicolas Adekeye / 2 weeks
• 0
• 2 min read

Nippon Steel remains committed to its proposed acquisition of U.S. Steel, despite President Joe Biden’s decision to block the deal. Chief Executive Eiji Hashimoto stated, “There is no reason or need to give up. We are convinced it’s clearly beneficial for both nations.” Hashimoto acknowledged that the effort may take time but emphasized the companies’ latest legal action in the U.S. as a key development. Nippon Steel and U.S. Steel filed federal lawsuits challenging the Biden administration’s decision, arguing that it ignores “the rule of law.” The lawsuits claim the acquisition will “enhance, not threaten, United States national security.” In response to Biden’s concerns about national security, Hashimoto reiterated that Nippon Steel and U.S. Steel are “united as one” in wanting the deal. Proponents of the takeover argue that Japan’s status as a U.S. ally and top investor in American companies makes the acquisition beneficial for both nations. They also believe the combined entity would create jobs and have an economic impact of up to $1 billion. U.S. Steel Corp. has accused the Biden administration of interference, stating, “We will vigorously defend our rights to complete this transaction and secure the future of U.S. Steel.” Japanese Prime Minister Shigeru Ishiba also supports the deal, denying any security concerns. Despite incoming President Donald Trump’s opposition to the acquisition, Nippon Steel remains committed to the deal. The Committee on Foreign Investment in the United States had previously reviewed the deal but did not reach a consensus on possible national security risks. Fitch Group’s CreditSights categorized the opposition to the deal as primarily political, noting that U.S. Steel can remain “a standalone company” and benefit from a recent rise in steel prices. SOURCE: AP News