By Yuka Obayashi
TOKYO (Reuters) – Japan’s Nippon Steel sees support for its proposal to acquire US Steel in regions of the United States where steel mills are located, Nippon Steel President Tadashi Imai told reporters on Wednesday.
On Monday, a US foreign investment committee referred the decision to approve or block the $15 billion deal to US President Joe Biden, who has 15 days to decide.
Biden and his new successor, Donald Trump, have both expressed opposition to the purchase.
On Wednesday, Imai reiterated that Nippon Steel has made a number of commitments to address national security concerns raised by the Commission on Foreign Investment in the United States, adding that he believed there had been “progress in understanding.”
“There is significant support for this acquisition in the communities of the different regions where the steel mills are located,” Imai said. “I hope President Biden will understand the value of this acquisition to the American economy.”
Both companies previously said they planned to close the deal, which also faced opposition from a powerful United Steelworkers (USW) union, before the end of 2024.
On Wednesday, Nippon Steel shared a letter to Biden, dated Dec. 23, signed by 20 U.S. municipal officials in areas where U.S. steel mills are located, asking the U.S. president to approve the acquisition deal.
“We respectfully urge you to listen to the voices of steelworkers and all others whose economic security is tied to US Steel – they speak loudly in unison that this deal must be approved,” the letter said.
USW said in a separate statement that it met with Nippon Steel officials twice last week. It reiterated its position that the Japanese steelmaker had no interest in the long-term safety of U.S. steel mills or blast furnace operations and urged Biden to keep the company in-house.
To drum up support for the takeover, Nippon Steel has previously said it will not use the deal as a cover for steel imports. The company has made a series of promises to protect jobs and invest in U.S. facilities it sees as key to its future growth.
