New President of Nippon Steel: "No Options Other Than Acquiring US Steel"

Newly appointed Nippon Steel President Imai Tadashi expressed his intention to acquire US Steel, stating that "no options other than the US Steel acquisition are being considered," according to reports by Nihon Keizai Shimbun (Nikkei) and others on the 1st.

According to the reports, President Imai Tadashi, during a press conference held prior to his official appointment, emphasized the necessity of Nippon Steel's acquisition for enhancing US Steel's competitiveness. He stated, "The acquisition by Nippon Steel is essential to boosting US Steel's competitiveness." He added, "Nippon Steel holds over 2,000 patents in North America alone," and "We plan to transfer Nippon Steel's advanced electric vehicle (EV) steel sheet technology to strengthen US Steel's competitiveness."

[Image source=Reuters Yonhap News]

In this way, President Imai Tadashi highlighted the benefits of this acquisition while also drawing attention to Nippon Steel's nearly 40 years of contribution to the United States. He appealed, "We have been engaged in the steel business in the U.S. for a long time," and "We hope to be seen as a company rooted in America." He further explained, "We are not considering any options other than the acquisition and are focusing on negotiations to gain the support of the United Steelworkers (USW) union."

These remarks by President Imai Tadashi came amid a bleak outlook for Nippon Steel's acquisition of US Steel. When Nippon Steel, the world's fourth-largest crude steel producer, announced last December its plan to purchase US Steel for $14.9 billion (approximately 19.6 trillion KRW), bipartisan political and labor opposition arose within the United States. Last month, even President Joe Biden stated, "US Steel has been an iconic American steel company for over a century," and "It must remain an American company." Former President Donald Trump also promised to block the deal if he were re-elected.

President Imai Tadashi added, "What concerns American politicians are job losses and the symbolic value of US Steel," and "I am confident that Nippon Steel is the most useful partner to help US Steel continue to grow in the U.S." Regarding concerns about restructuring after the acquisition, Nippon Steel has firmly stated that there will be no layoffs or plant closures until September 2026.

Meanwhile, Nippon Steel aims to complete the acquisition process between April and September. On the 10th, Prime Minister Kishida Fumio is scheduled to make a state visit to the United States and hold talks with President Biden.