The Coal Trader

Coal News Coal Markets US Steel Nippon

Nippon Steel confident of completing acquisition of U.S. Steel

According to Reuters, Nippon Steel President Eiji Hashimoto said on January 5 that despite opposition from U.S. labor unions and some U.S. senators, the company is still confident of completing the acquisition of U.S. Steel.

Nippon Steel’s planned $14.9 billion takeover has drawn criticism from U.S. Democratic and Republican lawmakers as well as the powerful United Steelworkers union.

The U.S. government also said the deal warranted a “careful review” given the company’s role in U.S. steel production. The U.S. government considers steel production critical to national security.

“I believe we can successfully complete the planned acquisition.” Nippon Steel President Eiji Hashimoto told reporters. “This agreement does no harm to the United States… because we will make investments consistent with the economic security strategies of the United States and other Western countries.”

Eiji Hashimoto said Nippon Steel’s heavy investment and its use of advanced steelmaking technology will be beneficial to the United States. He also said the current collective bargaining agreement would be maintained, adding: “Taking care of our employees and our union is our specialty.”

Acknowledging the challenges, Hashimoto said Nippon Steel had anticipated obstacles, including differing opinions, opposition and government scrutiny.