Australasian Centre for Corporate Responsibility, or ACCR, said Nippon Steel's $15 billion proposed takeover of United States Steel (X) risks raising decarbonization costs for the Japanese steelmaker, Reuters reported Thursday, citing the activist shareholder group's executive director, Brynn O'Brien.
"The potential addition of U.S. Steel's 11 blast furnaces to Nippon Steel's operations will almost certainly increase the cost of decarbonisation for the company," O'Brien was quoted as saying.
Nippon Steel told Reuters combining both firms' technologies would speed up efforts to become carbon neutral by 2050.
In late May, the ACCR, Corporate Action Japan and Legal & General Investment Management co-filed a set of shareholder proposals asking Nippon Steel to improve "its decarbonization strategy and disclosures on climate lobbying."
United States Steel did not immediately respond to requests for comment from MT Newswires.
Nippon Steel's annual general meeting is scheduled for Friday.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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