Nippon Steel’s Acquisition of U.S. Steel

TOKYO (Reuters) – Japan’s biggest steelmaker, Nippon Steel, is pursuing the acquisition of U.S. Steel. The company announced that if the purchase proceeds, core senior management and a majority of board members at U.S. Steel will be U.S. citizens.

The announcement comes after Democratic presidential candidate Kamala Harris reiterated President Joe Biden‘s concerns regarding the $15 billion deal, stating that U.S. Steel “should remain American-owned and American-operated”.

Nippon Steel clarified that the board of directors for U.S. Steel will have a majority of U.S. citizens, including three independent directors who will also be U.S. citizens. Furthermore, core senior management will consist of U.S. citizens as well.

U.S. Steel is set to be owned by Nippon Steel North America, a New York-based unit of the Japanese steelmaker, which has been active in the U.S. for over 50 years.

To gain support from politicians and labor unions, Nippon Steel hired former U.S. Secretary of State Mike Pompeo as an advisor. They also unveiled a plan last week to inject an additional $1.3 billion into U.S. Steel’s mills.

Nippon Steel Vice Chairman Takahiro Mori, a key negotiator for the deal, plans to visit the U.S. this month for deal-related meetings but did not disclose specific dates or individuals he will meet.

Both Nippon Steel and U.S. Steel are aiming to finalize the deal by the end of the year, dependent on regulatory approvals.