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Proposed acquisition of U.S. Steel by Nippon Steel

Proposed acquisition of U.S. Steel by Nippon Steel
InitiatorNippon Steel
TargetU.S. Steel
TypeAll-cash full acquisition
CostUS$14.9 billion (including debt)
InitiatedDecember 18, 2023
StatusPending regulatory approval

On December 18, 2023, Japanese steelmaker Nippon Steel Corporation (NSC), the world's third largest steel producer,[1] entered a definitive agreement to purchase United States Steel Corporation (U.S. Steel) for $14.9 billion.[2] Under the terms of the deal, U.S. Steel will become a wholly owned subsidiary of NSC but retain its name and headquarters in Pittsburgh, Pennsylvania; the Japanese steelmaker also pledged to honor existing agreements with the United Steelworkers (USW) trade union.[3] The purchase would result in Nippon Steel becoming the second largest steel manufacturer in the world.[4]

The potential foreign ownership of U.S. Steel, which is widely considered an icon of American industry,[5][6] has generated controversy in the U.S.[7] The White House,[8] lawmakers from both major parties,[9][10] and the USW have criticized or opposed the deal due to concerns about its impact on workers, supply chains, and national security.[11] Conversely, the transaction has garnered support from various government officials, policy experts, and business analysts, who argue that it will help revitalize U.S. Steel and the country's declining steel industry and counter that Japan is a major economic partner and investor.[12][13][14]

On March 14, 2024, the Biden Administration announced its opposition to the planned acquisition,[15] echoing a statement by former U.S. President Donald Trump, who pledged to block the deal "instantaneously" if elected president in the upcoming 2024 presidential elections.[16] The deal is undergoing an antitrust review by the U.S. Department of Justice,[17] and a possible investigation by the Committee on Foreign Investment in the United States (CIFUS).[18] Nippon Steel has subsequently delayed its timeline for closing the deal from the middle of 2024 towards the end of the year.[19]

  1. ^ "Steel Production by Country 2023". Wisevoter. Retrieved July 12, 2024.
  2. ^ Delouya, Samantha (December 19, 2023). "These all-American brands aren't actually American | CNN Business". CNN. Retrieved December 21, 2023.
  3. ^ Burns, Tobias (December 19, 2023). "Lawmakers push to stop 'fundamentally troubling' sale of US Steel". The Hill. Retrieved December 20, 2023.
  4. ^ Tan, Eli (December 18, 2023). "U.S. Steel will be acquired by Japan's Nippon in $14.1 billion deal". Washington Post. ISSN 0190-8286. Retrieved July 12, 2024.
  5. ^ Egan, Matt (March 14, 2024). "Biden says it's 'vital' US Steel remain American owned and operated | CNN Business". CNN. Retrieved July 12, 2024.
  6. ^ "Editorial: Loss of U.S. Steel stings, but Nippon may be just the right suitor". Pittsburgh Post-Gazette. Retrieved July 13, 2024.
  7. ^ "The row over US Steel shows the new meaning of national security". The Economist. ISSN 0013-0613. Retrieved July 12, 2024.
  8. ^ Cite error: The named reference :1 was invoked but never defined (see the help page).
  9. ^ Cite error: The named reference :2 was invoked but never defined (see the help page).
  10. ^ Cite error: The named reference uswopposes was invoked but never defined (see the help page).
  11. ^ "USW Slams Nippon Plan to Acquire USS". United Steelworkers. December 18, 2023. Retrieved July 12, 2024.
  12. ^ "U.S. Chamber Warns Against Politicizing NSC Acquisition of U.S. Steel". www.uschamber.com. March 14, 2024. Retrieved July 12, 2024.
  13. ^ "Nippon Steel's Acquisition of U.S. Steel Would Serve U.S. Interests". thediplomat.com. Retrieved July 12, 2024.
  14. ^ Griffith, Joel. "Nippon Acquisition of U.S. Steel". The Heritage Foundation. Retrieved July 12, 2024.
  15. ^ Egan, Matt (March 14, 2024). "Biden says it's 'vital' US Steel remain American owned and operated". CNN. Retrieved March 15, 2024.
  16. ^ Nippon Steel faces bipartisan effort to torpedo U.S. Steel deal | The Asahi Shimbun
  17. ^ "Sale of US Steel kicks up a political storm, but Pittsburgh isn't Steeltown USA anymore". ABC News. Retrieved July 12, 2024.
  18. ^ Rappeport, Alan (May 3, 2024). "Furor Over U.S. Steel Bid Puts Secretive Government Panel In Spotlight". The New York Times. ISSN 0362-4331. Retrieved July 13, 2024.
  19. ^ "Nippon Steel delays closing of acquisition of US Steel until late this year after US DOJ request". AP News. May 3, 2024. Retrieved July 12, 2024.

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