Nippon Steel: "Acquisition of US Steel Opposing Trump to Be Completed by Year-End"

Nippon Steel has announced that it can complete the acquisition of the U.S. steel company US Steel, which President-elect Donald Trump has expressed opposition to, by the end of this year.

Yonhap News

Mori Takahiro, Vice Chairman of Nippon Steel in charge of the US Steel acquisition, said at a press conference on the 7th regarding the plan to complete the acquisition, "The U.S. presidential election has ended, creating an environment for calm discussions," and added, "Unless there is some major decision, it will definitely be completed."

Vice Chairman Mori further explained, "The review is being conducted solemnly under the current (Joe Biden) U.S. administration, and there is no political aspect."

Nippon Steel is pursuing a plan to acquire US Steel, regarded as a symbol of American industrialization, for $14.9 billion (approximately 19.9 trillion KRW).

However, both President Biden and President-elect Trump have opposed the acquisition, causing difficulties for Nippon Steel.

Nippon Steel reapplied for a review to the U.S. Committee on Foreign Investment in the United States (CFIUS), which has been handling the acquisition matter, and the review deadline, originally in September, was extended by 90 days.

CFIUS reviews the impact of foreign investments such as mergers and acquisitions of U.S. companies on national security, and if it determines there are security concerns, it can demand corrective measures or recommend the president to block the transaction. The CFIUS decision is expected by the end of this year.

Regarding President-elect Trump's opposition, Vice Chairman Mori said, "I will go to talk," emphasizing, "This matter is very close to President-elect Trump's policy of attracting foreign investment."

However, since President-elect Trump clearly expressed opposition to the acquisition plan several times before the election, it is difficult to predict whether the acquisition will be successful.

Last month, President-elect Trump also said, "I will not let (US Steel) be sold to Nippon Steel. It may be a good deal, but I don't care," adding, "I hope the deal is not completed before I arrive there (the White House)."