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Nippon Steel Vice Chairman to Visit US for Key Meetings in U.S. Steel Acquisition

 |  May 20, 2024

Nippon Steel Corp. (5401.T) announced on Saturday that its vice chairman, Takahiro Mori, will travel to the United States next week to engage with stakeholders as part of the ongoing negotiations for the company’s planned acquisition of U.S. Steel (X.N). The trip underscores the Japanese steel giant’s commitment to advancing the nearly $15 billion deal, which has faced political and union resistance in the U.S.

A spokesperson for Nippon Steel in Tokyo confirmed that Mori’s visit aims to continue dialogues with various stakeholders involved in the deal to gain a comprehensive understanding of their concerns and expectations. However, she did not disclose specific details about Mori’s itinerary, including the identities of those he will meet or the duration of his stay.

Related: EU Antitrust Decision Expected for Nippon Steel’s US Steel Acquisition Next Month

The acquisition proposal, announced in December, has encountered opposition from both Democratic President Joe Biden and Republican former President Donald Trump, as well as the United Steelworkers (USW) union. To address these concerns, Nippon Steel has committed to relocating its U.S. headquarters to Pittsburgh, Pennsylvania, the base of U.S. Steel, and has made assurances regarding job security and additional investments.

According to Reuters, Mori’s agenda includes meetings in Pittsburgh next week with local staff and elected officials. These discussions are crucial for garnering support from the USW and addressing political concerns.

Nippon Steel aims to finalize the acquisition in the latter half of 2024, a slight delay from the initially projected second to third quarter timeframe. This extension comes after the U.S. Department of Justice requested further information and materials as part of an antitrust review. Despite this, the European Commission has already given its approval for the deal.

Source: Reuters