Nippon Steel Delays Acquisition of U.S. Steel
Nippon Steel Corporation has announced a three-month delay in completing its acquisition of United States Steel Corporation. The deal, valued at $14.1 billion, has become a political flashpoint in the lead-up to the November presidential election.
Donald Trump, the presumptive Republican nominee, has vowed to block the acquisition, while President Joe Biden has expressed support for unionized workers who oppose the takeover.
Nippon Steel claims the delay is due to the timing of U.S. regulatory approval, not political pressure. The company maintains that the acquisition will benefit both companies and the American economy.
The planned acquisition would allow U.S. Steel to produce more advanced and environmentally sustainable steel for American customers. The companies also claim it would strengthen American industry against competition from China.
U.S. Steel's headquarters will remain in Pittsburgh, its name will be unchanged, and production and jobs will remain in the United States after the acquisition.
Shareholders of U.S. Steel have already approved the deal. However, it still needs approval from the Committee on Foreign Investment in the United States, which assesses whether certain deals pose a national security threat.