Alexandra Alper and David Shepardson reported that a top Nippon Steel executive and U.S. Steel’s CEO are meeting with senior U.S. officials on Wednesday to try to save Nippon’s $14.9 billion bid for U.S. Steel. The meeting involves Takahiro Mori, a key Nippon negotiator, and U.S. Steel CEO David Burritt, along with Treasury Deputy Secretary Wally Adeyemo and Commerce Deputy Secretary Don Graves. The Treasury Department, which leads the Committee on Foreign Investment in the United States (CFIUS), Nippon Steel, and U.S. Steel declined to comment.
There is opposition to the deal from both Republican presidential nominee Donald Trump and Democratic nominee Kamala Harris, who are trying to win the critical swing state of Pennsylvania where U.S. Steel is based. U.S. Steel CEO David Burritt plans to discuss the merger at an upcoming appearance at the Detroit Economic Club. Last year, a bid for U.S. Steel by rival Cleveland-Cliffs was rejected and raised concerns from U.S. automakers.
Concerns were raised by the Japan Business Federation Keidanren and several U.S. business groups in a letter to Treasury Secretary Janet Yellen about the influence of political pressure on the national security review of Nippon Steel’s acquisition of U.S. Steel. CFIUS warned in August that the proposed tie-up could weaken the country’s steel supply chain and threaten national security.
The companies defended the deal in a 100-page letter, stating that it would strengthen U.S. steel output by bringing much-needed cash injection from an allied nation into a struggling American company. Japanese government spokesperson Hideki Murai emphasized the importance of strengthening economic relations between Japan and the U.S., without specifically commenting on the deal.
More Stories
EU watchdog investigates Google data use for AI model