International Steel Mills

CRU: Banks line up $16B loan to Nippon Steel for U.S. Steel deal

Written by CRU Americas


Three of Japan’s major banks have agreed to lend Nippon Steel a combined $16 billion for its $14.1-billion planned acquisition of United States Steel, provided the acquisition is completed, the Japanese steelmaker said.

The banks are Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group, and Mizuho Financial Group, Reuters news agency reported.

The directors of Pittsburgh-based US Steel have unanimously approved the takeover. But the White House is less sure.

President Joe Biden’s most senior economic adviser, Lael Brainard, has said: “[He] believes the purchase of this iconic American-owned company by a foreign entity, even one from a close ally, appears to deserve serious scrutiny in terms of its potential impact on national security and supply chain reliability.”

This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.

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