Nippon Steel not to import from overseas mills in bid to save U.S. Steel deal

Reuters11-19
Nippon Steel not to import from overseas mills in bid to save U.S. Steel deal

Nov 18 (Reuters) - Nippon Steel 5401.T will not import steel to the U.S. from its international mills, the Japanese company's Executive Vice President Takahiro Mori said on Monday in a letter to United Steelworkers union members.

Nippon is looking to close its $14.9 billion deal for U.S. Steel X.N by the end of the year before President-elect Donald Trump, who has pledged to block the deal during his campaign, enters the White House in January.

In its effort to ease the challenges posed by the union and President Joe Biden, the company has pledged investments to US Steel and assured job security to the United Steelworkers union.

It has also promised to sell a stake in a U.S. steel plant joint venture if the company succeeds in the buyout.

In his letter, Mori reiterated the promises made over the past year and addressed concerns raised by union leaders, including USW President David McCall.

"We are here to inform you, not to negotiate as President McCall has suggested. I have asked President McCall to meet, most recently on November 11. I await his response," Mori said.

In September, an arbitration board jointly selected by the company and the USW, ruled in favor of the deal, but the union disagreed with the decision.

Mori, who is scheduled for a U.S. visit next week, will meet steelworkers in Pittsburgh and also visit New York and Washington.

The Japanese steel company is making efforts to finalize the deal, as the Committee on Foreign Investment in the United States has extended its review until the end of December.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Mohammed Safi Shamsi and Arun Koyyur)

((Aatreyee.Dasgupta@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment