Nippon Steel reinstates intention to buy US Steel

Responding to recent comments by President Joe Biden, Japan-based Nippon Steel Corp. (NSC) has issued a statement saying, “The partnership between U.S. Steel and Nippon Steel is the right combination to ensure that U.S. Steel remains an iconic American company for generations to come.”

According to NSC, its acquisition of Pittsburgh-based U.S. Steel delivers clear benefits to all U.S. Steel stakeholders, including customers, union and nonunion workers, suppliers, communities and stockholders, as well as to the broader American steel industry and the United States as a whole.

Shareholders of U.S. Steel largely expressed their agreement with NSC’s statement, with the vast majority of U.S. Steel stock owners voting recently agreeing to the terms of the transaction.

However, politicians beyond Biden—including his opponent in the upcoming presidential election, Donald Trump—have expressed opposition to the deal. The United Steelworkers (USW) union also has opposed the takeover, instead favoring the competing bid from Cleveland-Cliffs.

In its April 18 statement, NSC shows no sign of being dissuaded from its acquisition attempt.

“U.S. Steel will remain an American company and its headquarters will stay in Pittsburgh, its iconic name will be unchanged, and its products will remain mined, melted and made in America," NSC says.

“Jobs will be protected. There will be no plant closures, and production and jobs will remain in America. Our goal is for Pennsylvania to succeed alongside us, and we look forward to investing in its communities and research institutions.”

The Japanese firm also is pledging to make capital investments of at least $1.4 billion in U.S. Steel’s blast furnace/basic oxygen furnace (BOF) steel mills.

“This will strengthen the resilience of American industry against threats from China and support America’s crucial alliance with Japan," NSC says.

In addition to its blast furnace/BOF mills in Illinois, Indiana, Michigan and Pennsylvania, U.S. Steel also owns the recycled-content electric arc furnace Big River Steel complex in Arkansas.

While the USW continues to express support for the bid of Cleveland-based Cleveland-Cliffs, NSC says it has provided significant commitments to the USW, including undertakings relating to job security, pension security, capital investment, technology sharing, financial reporting and the ability to enforce contractual obligations postclosing.