Nippon Steel says expects to close US Steel takeover in 2024

Japan's Nippon Steel said it still expects to close its takeover of US Steel this year, despite opposition from both President Joe Biden and president-elect Donald Trump. Ahead of the US election, Trump vowed to block the deal, which is worth $14.9 billion including debts. His vice-president elect J.D. Vance also led congressional opposition to the takeover, describing domestic steel production as a national security priority. United States Steel is based in Pittsburgh in the swing state of Pennsylvania, which Biden won in 2020 but Trump took back this week as he stormed to election victory. A Nippon Steel earnings presentation on Thursday maintained that "the transaction is expected to close in... calendar year 2024" pending a US national security review. "Unless the situation changes dramatically, I believe the conclusion will come by the end of the year," during Biden's time in office, vice chairman Takahiro Mori told reporters. Trump will be inaugurated on January 20. "Now that the election is over, I think we have the right environment to discuss the core of this issue in a calm manner," he added."I am sure we can close the deal by the year-end," Mori said. The deal is being reviewed by a body headed by Treasury Secretary Janet Yellen that audits foreign takeovers of US firms, called the Committee on Foreign Investment in the United States (CFIUS). In September, Biden's administration extended this review, pushing a conclusion on the politically sensitive deal until after the election. Major Japanese and American business groups have urged Yellen not to succumb to political pressure when reviewing Nippon Steel's proposed acquisition. After the deal was announced in December 2023, Biden said it was "vital" for US Steel "to remain an American steel company that is domestically owned and operated". "It is important that we maintain strong American steel companies powered by American steelworkers. I told our steelworkers I have their backs, and I meant it," he said in March. US Steel has argued that the Nippon deal is needed to ensure sufficient investment in its Mon Valley plants in Pennsylvania, the earliest of which dates to 1875. It warned before the election that if the sale is blocked, it could shutter facilities in the state. In a win for the proposed transcontinental merger, arbitrators ruled in September that Nippon Steel had proven it could assume US Steel's labour contract obligations. The decision was greeted by US Steel and condemned by the steelworkers union, which has fought the deal.

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