The Japanese company intensified negotiations with interested parties
Japanese steelmaker Nippon Steel is on track to complete its planned acquisition of US Steel by the end of September this year. The company has intensified negotiations with key stakeholders, including unions. This was stated by Nippon Steel Executive Vice President Takahiro Mori of The Japan Times. reports .
The deal drew criticism from some US lawmakers and the influential United Steelworkers (USW) union. Additionally, former US President Donald Trump said he would “instantly” blockade if he won the November elections.
In January, Mori met with members of the US Congress to discuss how the planned acquisition would be beneficial to all parties.
“I don't think they can block a project that is important to both sides, beneficial to related industries and to both countries, simply for political reasons,” Nippon Steel's executive vice president said at a press conference on February 7.
He added that the company has hired American lobbyists.
Nippon Steel is seeking approval from the USW, emphasizing that the deal will strengthen the North American company's profitability and finances, leading to stable jobs. According to Mori, the shareholder meeting of US Steel, which could become a division of the Japanese steelmaker, could be held at the end of March. At this time, Nippon Steel wants to reach an agreement with the union.
Both parties are also seeking regulatory approval in the US and other jurisdictions. If one of them terminates the agreement, it will be forced to pay a fine of US$565 million to the other.
As previously reported, three of Japan's largest banks – Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Mizuho Financial Group – plan to provide Nippon Steel with a loan totaling $16 billion for its planned acquisition of the American steelmaker. Bloomberg reported that the term of the loan will be one year. The Japanese steelmaker is expected to issue bonds and new shares to raise funds after the acquisition is completed.
