The proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel has faced significant political opposition since it was announced. Despite receiving approval from U.S. Steel shareholders, with over 98% of the votes in favor of the deal, the merger is still not in the clear. President Joe Biden and several U.S. lawmakers have raised concerns about the acquisition, citing national security issues. President Biden has expressed the importance of U.S. Steel remaining a domestically owned American company.
The United Steelworkers (USW) labor union has been vocal in its opposition to the deal, expressing worries about potential job losses. The union believes that the acquisition will result in negative consequences for U.S. Steel’s employees and retirees. Despite Nippon Steel’s pledge of no job cuts and commitments to honoring existing agreements, the USW remains skeptical of the deal’s impact on workers.
Regulators are closely scrutinizing the acquisition of U.S. Steel by Nippon Steel. The Committee on Foreign Investment in the United States (CFIUS), a powerful panel that reviews foreign investments in U.S. companies, has met with the parties involved to discuss the deal. Additionally, the U.S. Justice Department has launched an in-depth antitrust investigation into the takeover, raising further concerns about the deal’s regulatory approval.
Despite facing political opposition and regulatory scrutiny, Nippon Steel remains confident in the acquisition of U.S. Steel. The Japanese steelmaker has pledged to protect and grow U.S. Steel, promising significant benefits to stakeholders, the American steel industry, and the United States as a whole. Vice Chairman Takahiro Mori expressed the company’s commitment to collaborating closely with U.S. Steel to become the ‘Best Steelmaker with World-Leading Capabilities.’
While the deal between Nippon Steel and U.S. Steel is expected to close in the second or third quarter of this year, Bloomberg News reported that both steelmakers now anticipate the deal to close in the second half of 2024. Despite the challenges and controversies surrounding the acquisition, Nippon Steel won the race for U.S. Steel over rivals Cleveland-Cliffs, ArcelorMittal, and Nucor.
The acquisition of U.S. Steel by Nippon Steel has been met with significant opposition and scrutiny. From political concerns about national security to labor union criticisms and regulatory investigations, the deal faces numerous challenges. While Nippon Steel remains confident in the benefits of the acquisition, the future of the merger remains uncertain. The timeline for the deal’s completion has shifted, reflecting the complexities and uncertainties surrounding this controversial merger.