The $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel should be completed by the end of September this year, according to a report by Nikkei Asia. The deal will provide Nippon Steel, the fourth-largest in the world, with an additional capacity of 100 million metric tons of global crude steel and boost its production in the United States.
To ensure the deal closes soon, Nippon Steel has intensified talks with key stakeholders. At the start of the year, Executive Vice President Takahiro Mori met with various members of the U.S. Congress members to “discuss the benefits of this deal for all stakeholders,” the report said.
The Japanese steelmaker, in a press statement, said it was the right partner to ensure the long-term success of the Pennsylvania-based company. It added that the resulting synergy will benefit U.S. Steel, its union workers, the national steel industry, and national security.
“Nippon Steel will advance American priorities by driving greater quality and competitiveness for customers in critical industries that rely on American steel. Our aim is to bolster and grow U.S Steel in the U.S. market in a way that prioritizes its talented employees,” it also said.
Despite Nippon Steel’s optimism about the benefits of the acquisition, U.S. President Joe Biden has expressed his reservations over the deal. But, Mori remains confident that the purchase will be approved in the end.
“I don’t think they (American government) can block a project that is meaningful to both sides and beneficial to related industries and both counties simply because of political considerations,” he said.
