President Joe Biden has spoken against the planned $14.1 billion acquisition of US Steel by Japan's Nippon Steel, saying the firm must remain "domestically owned and operated." However, the Japanese steelmaker has maintained its stand and is determined to carry out the buyout deal.
In a statement released on Friday, Nippon Steel said: "Our transaction delivers clear benefits to US Steel, union workers, the broader American steel industry, and American national security... We are determined to see this through and complete the transaction."
Commitments of Japan's Nippon Steel
According to Kyodo News, Japan's biggest steelmaker has promised to make extra investments worth $1.4 billion after the deal is completed. Under certain conditions, Nippon Steel said there would be no layoffs or facility closures until September 2026.
According to the company, the merger would bolster American supply networks and economic defenses against China. Nippon Steel said it employs over 4,000 Americans and has imported metallurgical coal from the US for more than 70 years, reiterating its commitment to the US economy.
"No other US steel company on its own can meet this challenge while also meeting antitrust requirements... Nippon Steel is the right partner to ensure that US Steel is successful for generations to come as an iconic American company," the company noted.
Resistance to Acquisition of US Steel By Japan's Nippon Steel
The statement was issued after Biden's remarks on Thursday about the importance of local ownership of the iconic US firm. With the US presidential election in November drawing closer, the votes of steelworkers in swing states are seen as increasingly crucial for Biden.
"I told our steelworkers I have their backs, and I meant it. US Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated," Biden said in a statement on Thursday.
According to Al Jazeera, former President Donald Trump, who is believed to be Biden's opponent in the November election, has also stated his intention to block Nippon Steel's plan to buy the US firm.
The merger, which would make the combined company the third largest steel producer in the world, is also opposed by the United Steelworkers International, the biggest industrial union in the US.
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