Market Segment

Nippon maintains value of USS deal following Biden remarks

March 15, 2024

Nippon Steel has reaffirmed the value of its deal for U.S. Steel a day after President Biden issued a statement opposing the sale.

“Our transaction delivers clear benefits to U.S. Steel, union workers, the broader American steel industry, and American national security,” Nippon said in a statement on Friday.

The Japanese steelmaker said through increased financial investment and the contribution of advanced technologies to U.S. Steel, Nippon “will advance American priorities.”

One of these includes “strengthening US supply chains and economic defenses against China.”

“No other US steel company on its own can meet this challenge while also meeting antitrust requirements,” Nippon claimed.

The company reiterated its commitment to “job security, pension security, capital investment, technology sharing, financial reporting, and the ability to enforce contractual obligations post-closing.”

Recall that the United Steelworkers (USW) union has opposed the deal, first announced in December.

“Nippon Steel is the right partner to ensure that U.S. Steel is successful for generations to come as an iconic American company,” the company said.

“We are progressing through the regulatory review, including CFIUS, while trusting the rule of law, objectivity, and due process we expect from the US government,” Nippon added.

“CFIUS” is the Committee on Foreign Investment in the US review process.

Concluding, Nippon said it was determined “to see this through and complete the transaction.”

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.