Nippon Steel pushes deadline to close U.S. Steel deal as Biden decision looms
Source: Reuters
December 26, 2024 9:01 AM EST Updated 11 hours ago
TOKYO, Dec 26 (Reuters) - Japan's Nippon Steel (5401.T), opens new tab said on Thursday it has extended the closing date for its $14.9 billion purchase of U.S. Steel (X.N) as U.S. President Joe Biden weighs whether to block a deal that has faced intense opposition since it was announced.
The closing date was revised to the first quarter of 2025 from the third or fourth quarter of 2024 previously.
Nippon paid a hefty premium to clinch the deal last December in an auction, but the deal faced opposition from the powerful United Steelworkers union (USW), as well as politicians. Biden has said he wants U.S. Steel to be domestically owned and operated, while President-elect Donald Trump has vowed to block the deal after he takes office in January.
On Monday, the committee that vets foreign deals in the U.S. for security concerns referred the decision whether to approve or block the deal to Biden. He has 15 days to decide, and if he takes no action, the merger will get an unexpected green light. "Nippon Steel hopes that the President will use this time to conduct a fair and fact-based evaluation of the acquisition. We remain confident that the acquisition will protect and grow U.S. Steel," the company said on Thursday.
Read more: https://www.reuters.com/markets/deals/japans-nippon-steel-revises-closing-date-us-steel-acquisition-2024-12-26/
= new reply since forum marked as read
They make and sell their cars here in the US and they hire American workers in their plants. How is this any different?
Except that US Steel, which is probably going belly-up if this deal doesn't happen, can't find another buyer for their out-of-date steel mills. So there really is only one possible buyer (namely Nippon), and it's a company that's willing to upgrade all the plants and capabilities on American soil AND keep American workers on the job. This is a huge investment that US Steel isn't willing or able to make on its own, but Nippon Steel is.
There are many workers and supply companies in western Pennsylvania, northern Ohio, West Virginia and elsewhere who will be profoundly affected if US Steel closes its doors and lays everybody off. What American President (D or R) is willing to allow that to happen? Please wake up and smell the coffee!
Why do you think the steelworkers unions are supporting this sale? They aren't idiots...
I live in Pittsburgh and the unions are still strong here, even though they've lost ground in the last 30 or 40 years.
