Nippon Steel remains confident that its $14.9 billion acquisition of US Steel will proceed as planned, with a target closure by the end of 2024, despite significant political resistance. Both President Joe Biden’s administration and president-elect Donald Trump have voiced concerns over the deal, citing national security and the importance of maintaining US Steel as an American-owned entity.
Biden, a strong advocate for bolstering domestic industries, has repeatedly stressed the need to preserve US Steel’s American ownership, arguing that foreign control could undermine national security. Trump, who won back Pennsylvania in the 2024 election, echoed these concerns, viewing the deal as a potential threat to US manufacturing. However, Nippon Steel’s vice chairman, Takahiro Mori, is optimistic about the deal’s closure. He expressed confidence that the transaction would be concluded by year-end, barring any unforeseen developments. “Unless the situation changes dramatically, I believe we will close the deal by the end of the year,” Mori said during a recent earnings presentation.
The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), which audits foreign takeovers of US companies for national security risks. The review process, which was delayed until after the election, has raised concerns among US Steel’s leadership about potential political interference in their investment plans, particularly for their aging Mon Valley plants in Pennsylvania. Local reactions have been mixed. While US Steel argues that the merger is necessary for continued investment in its facilities, particularly those dating back to the 19th century, the steelworkers union has strongly opposed the deal, citing fears of job losses and weakened labor protections. Despite these challenges, the deal could have significant implications for future foreign acquisitions in key industries like steel.