Nippon Steel Expresses Concerns Over Political Influence in US Steel Acquisition

In a recent statement, Nippon Steel condemned the alleged interference of politics in its planned acquisition of US Steel, a deal valued at approximately $14.9 billion including debts. The transaction is currently under review by a Washington-based body responsible for assessing foreign takeovers of US firms.

According to a Bloomberg News report, citing sources close to the matter, President Joe Biden is expected to block the sale on national security grounds once the review process concludes later this month. Nippon Steel emphasized that such political influence is 'inappropriate' and outweighs genuine national security interests, particularly given the crucial alliance between the US and Japan.

The Japanese steelmaker has engaged in good faith with all relevant parties to highlight how the acquisition would strengthen American economic and national security by countering threats posed by China. Nippon Steel remains confident in the justice and fairness of the American legal system and is prepared to consider all available measures, if necessary, to reach a fair conclusion. The takeover was initially agreed upon by the companies about a year ago.

US Steel asserts that the acquisition by Nippon is essential for securing necessary investments in its Pennsylvania plants, which could face closure if the deal is blocked. However, the United Steelworkers union has strongly opposed the buyout, despite Nippon's promises of investments to maintain competitiveness of Pennsylvania factories and the establishment of newer 'mini mills' in the American South.