Quotes may be displayed in real-time or delayed by 15 minutes. Market data is provided by Factset and implemented by FactSet Digital Solutions. A legal statement is in place to ensure the material is not published, broadcast, rewritten, or redistributed.
Nippon Steel announced a $14.9 billion acquisition of U.S. Steel, reassuring that there would be no layoffs or plant closures as part of the deal. The statement aimed to address concerns from President Biden and the United Steelworkers union. Nippon Steel committed to investing $1.4 billion and increasing the current CBA by over 140%. The company clarified that no layoffs or plant closures would occur due to the transaction.
President Biden expressed opposition to the sale, emphasizing the importance of U.S. Steel remaining domestically owned and operated. The Biden administration had signaled that the deal deserved scrutiny due to U.S. Steel’s role in national security. The proposed acquisition is under review by the Committee on Foreign Investment in the U.S. (CFIUS). U.S. Steel expects the deal to close later this year, viewing it as an exciting development.
Nippon Steel highlighted its history of operating facilities in the U.S. and its collaborations with American companies in the steel industry supply chain. The company emphasized its contribution to American priorities through financial investment and advanced technologies. The United Steelworkers union echoed concerns about economic and national security implications of the sale, supporting the notion that U.S. Steel should remain domestically owned and operated.
Former President Donald Trump also opposed the deal, stating that he would block it instantly. He emphasized the importance of protecting the U.S. steel industry. Overall, the acquisition of U.S. Steel by Nippon Steel has sparked debate and raised questions about national security and economic implications.
