Nippon Steel says Expects to Close US Steel Takeover by End of 2024
Ahead of the US election, Trump vowed to block the deal worth more than $14 billion.
SEATTLE (Scrap Monster): Japan's Nippon Steel said on Thursday that it still expects to close its takeover of US Steel this year,despite opposition from both President Joe Biden and president-elect Donald Trump.
Ahead of the US election, Trump vowed to block the deal worth more than $14 billion.
His vice-president elect J.D. Vance also led congressional opposition to the takeover, describing domestic steel production as a national security priority.
A Nippon Steel earnings presentation on Thursday maintained that 'the transaction is expected to close in... calendar year 2024' pending a US national security review.
'Now that the election is over, we believe that there can be constructive discussions about this deal,' vice chairman Takahiro Mori told reporters, according to Bloomberg News.
In September, Biden's administration extended the review by a body headed by Treasury Secretary Janet Yellen that studies foreign takeovers of US firms, called the Committee on Foreign Investment in the United States (CFIUS).
That pushed the body's conclusion on the politically sensitive deal until after the election.
Major Japanese and American business groups have urged Yellen not to succumb to political pressure when reviewing Nippon Steel's proposed acquisition, which was first announced in December 2023.
US Steel has argued that the Nippon deal is needed to ensure sufficient investment in its Mon Valley plants in Pennsylvania, the earliest of which dates to 1875.
It warned before the election that if the sale is blocked, it could shutter facilities in the state.
Arbitrators ruled in September that Nippon Steel had proven it can assume US Steel's labour contract obligations, in a win for the proposed transcontinental merger.
The decision was greeted by US Steel and condemned by the steelworkers union, which has fought the deal.
Courtesy: www.economictimes.com
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