TOKYO: Nippon Steel on Wednesday (Dec 11) slammed the “inappropriate” influence of politics on its planned takeover of US Steel after a media report said United States President Joe Biden would block it.
The deal worth US$14.9 billion including debts is being reviewed by a body in Washington that assesses foreign takeovers of US firms.
Bloomberg News, citing people close to the matter, said Biden planned to kill the sale on national security grounds when the review is finished later this month.
“It is inappropriate that politics continue to outweigh true national security interests – especially with the indispensable alliance between the US and Japan as the important foundation,” a Nippon Steel statement said.
“We have engaged in good faith with all parties to underscore how the transaction will bolster American economic and national security by countering the threats posed by China,” it added.
“Nippon Steel still has confidence in the justice and fairness of America and its legal system, and – if necessary – will work with US Steel to consider and take all available measures to reach a fair conclusion.”
The takeover was agreed by the companies around a year ago.
US Steel says it needs the Nippon deal to ensure sufficient investment in plants in Pennsylvania, which it warns it may have to shutter if the sale is blocked.
But the buyout has been fiercely condemned by the United Steelworkers union – even as Nippon promised investments to keep Pennsylvania factories competitive and newer “mini mills” in the American South.
Source: CNA
