Nippon Steel Pledges to Keep U.S. Steel American-Led After Acquisition

Nippon Steel has pledged to keep U.S. Steel under American leadership if its acquisition of the historic company is successful. After the transaction, the Japanese steelmaker assured that most U.S. Steel’s board members and all top executives would be U.S. citizens.

In a statement, Nippon Steel emphasized that its governance plan is designed to preserve the benefits of the acquisition while maintaining U.S. Steel’s identity as a quintessential American company.

In April, U.S. Steel shareholders approved Nippon Steel’s $14.9 billion buyout offer, valued at $55 per share. Since then, the proposed deal has become a central issue in the 2024 U.S. presidential race, especially in Pennsylvania, a critical swing state where protecting domestic jobs is a priority for both candidates.

During a campaign stop in Pennsylvania, Vice President Kamala Harris stressed the need for U.S. Steel to remain under domestic ownership, echoing President Joe Biden’s earlier stance.

“U.S. Steel should stay American-owned and American-run, and I will always stand with our nation’s steelworkers,” Harris said.

Former President Donald Trump has also vowed to block the deal if reelected. The acquisition has faced criticism from both political parties, with some framing it as a national security issue.

Pennsylvania Senator John Fetterman has been vocal in his opposition, saying he is committed to preventing the foreign sale. He argued that steel is vital for national defense and steel-producing regions’ economic stability, calling the deal “outrageous.”

The United Steelworkers (USW) union has also raised concerns about the potential impact on jobs despite Nippon Steel’s assurances that no positions would be cut. Under the terms of the deal, U.S. Steel’s headquarters would remain in Pennsylvania, and the company would continue to operate as a U.S. entity, though owned by Nippon Steel’s North American subsidiary.

U.S. Steel, crucial in supplying materials for major American infrastructure and the war effort during World War II, has faced financial struggles in recent years. The company first put itself up for sale in August 2023.

President Biden has repeatedly emphasized the importance of steel to the nation, famously stating, “The backbone of America has a steel spine,” while addressing steelworkers earlier this year. In December 2023, the Biden administration announced that it would closely review the proposed acquisition, citing concerns about national security and the reliability of the supply chain.

Cleveland-Cliffs, a competing steelmaker based in Ohio, made a $7 billion offer for U.S. Steel, arguing that its proposal is more favorable. Nevertheless, Nippon Steel raised its full-year profit forecast, signaling confidence that its deal will succeed.

In its latest statement, Nippon Steel expressed optimism, claiming that its investment would strengthen the American steel industry, protect jobs, and boost national security more effectively than any other alternative. The company remains hopeful that the deal will pass regulatory review and be finalized shortly.

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