Amid Opposition From Biden and Workers, Nippon Steel VC Returns To Discuss US Steel Acquisition

The Vice Chairman of Nippon Steel, Takahiro Mori, is gearing up for another trip to the United States to continue discussions on the proposed acquisition of U.S. Steel (NYSE:X).

What Happened: Mori’s upcoming visit will be his third to the U.S. in recent months, emphasizing the importance of the $15 billion takeover bid for the world’s fourth-largest steelmaker, Reuters reported on Wednesday. Despite support from U.S. Steel’s management, the deal has faced resistance from the White House and the United Steelworkers union.

While Nippon Steel has not released further information about Mori’s impending visit, an anonymous source revealed that Mori intends to visit several states where U.S. Steel operates, meeting with local officials, community leaders, and workers.

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During his last visit, Mori interacted with U.S. Steel employees and community leaders to gain a better understanding of their views, receiving a positive response, according to the company.

Why It Matters: U.S. Steel and Nippon Steel were considering delaying the closure of their $14.1 billion deal until the second half of 2024 due to political resistance and ongoing investigations. The deal, initially expected to close by mid-2024, faced opposition from the United Steelworkers and President Joe Biden, with a national security review potentially extending into 2025.

Price Action: As of Wednesday, U.S. Steel’s stock was trading 0.83% lower at $38.01 during pre-market, according to Benzinga Pro.

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Image by Poetra.RH via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari