Nippon Steel Seeks Support for U.S. Steel Acquisition

By Yuka Obayashi

TOKYO (Reuters) – Japan's Nippon Steel is gaining support for its proposal to acquire U.S. Steel in regions where steel mills are located, as stated by Nippon Steel's President Tadashi Imai to reporters on Wednesday.

On Monday, a U.S. foreign investment committee referred the decision to approve or block the $15 billion deal to U.S. President Joe Biden, who has 15 days to decide.

Biden and his incoming successor, Donald Trump, have both expressed opposition to the purchase.

On Wednesday, Imai reiterated that Nippon Steel has made multiple commitments to address national security concerns articulated by the Committee on Foreign Investment in the United States, adding that he believes there has been "progress in understanding."

> "In the communities of the various regions where the steel mills are located, there is considerable support for this acquisition," Imai said. "I hope that President Biden will understand… the value of this acquisition to the U.S. economy."

Both companies have previously stated they planned to close the deal, which has also faced challenges from the powerful United Steelworkers (USW) labor union, before the end of 2024.

On Wednesday, Nippon Steel shared a letter to Biden, dated December 23 and signed by two dozen U.S. municipal officials in regions with U.S. Steel mills, urging the U.S. president to approve the acquisition.

> "We respectfully urge you to listen to the voices of the steelworkers and everyone else whose economic security is tied to U.S. Steel – they are speaking loudly in unison that this deal must be approved," the letter stated.

USW, in a separate announcement, said it met Nippon Steel officials twice last week and reiterated its belief that the Japanese steelmaker has no genuine interest in the long-term security of U.S. Steel plants or blast furnace operations. The union urged Biden to maintain domestic ownership and operation of the company.

To gain support for the acquisition, Nippon Steel previously stated it will not use the deal as a pretext to import steel and has made several pledges to protect jobs and invest in U.S. facilities that it views as essential for future growth.