Statement Announcement "Benefits for US Security as Well"
Nippon Steel has expressed its intention to proceed with the acquisition of the American steel company US Steel. This is interpreted as a response to the public opposition voiced by U.S. President Joe Biden.
According to the Nihon Keizai Shimbun (Nikkei) on the 15th, Nippon Steel issued a statement saying, "We have a strong determination to complete the acquisition of US Steel." It added, "We will be the perfect partner to ensure that US Steel remains an iconic American company across generations," and requested, "We await an objective judgment from the U.S. government based on the rule of law and due legal process."
Nippon Steel also highlighted the benefits of this acquisition. Regarding the purpose of the acquisition, it stated, "To strengthen US Steel and grow together in the U.S. market," emphasizing that "it will provide clear advantages not only to US Steel but also to American labor unions, the steel industry, and even national security."
Furthermore, it announced a promise to invest an additional $1.4 billion (approximately 1.8 trillion KRW) in US Steel, which is 140% more than the existing agreement. Concerns about restructuring after the acquisition were dismissed, with a commitment that there will be no layoffs or plant closures until September 2026.
Founded in Pittsburgh in 1901, US Steel is a symbol of American manufacturing that grew alongside the United States into a global superpower. When Nippon Steel, the world's fourth-largest crude steel producer, announced in December last year its plan to acquire US Steel for $14.9 billion (approximately 19.6 trillion KRW), political opposition from both parties and labor groups such as the United Steelworkers (USW) arose within the U.S.
U.S. President Joe Biden also publicly opposed the acquisition in a statement the previous day, saying, "US Steel has been an iconic American steel company for over a century," and "It must remain an American company." Facing his re-election bid in November, he emphasized the importance of maintaining strong steel companies operated by American workers, showing awareness of the labor vote, a traditional Democratic support base.
Republican presidential candidate and former President Donald Trump also said in January, "During my tenure, I revived the steel industry, and now the idea of US Steel being sold to Japan is terrible," adding, "I will stop it immediately." The management of Cleveland-Cliffs, a competitor of US Steel, recently stated that they might pursue the acquisition if Nippon Steel's bid fails.
Nippon Steel aims to complete the acquisition process between April and September. The company emphasized, "We will continue efforts to reach an agreement with the American steel labor unions opposing the acquisition."
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