By Yuka Obayashi and Ritsuko Shimizu
TOKYO (Reuters) – Nippon Steel intends to proceed with its proposed acquisition of US Steel and wants its “deep roots” in the United States to be recognized, its new chairman said, comments that came after U.S. President Joe Biden will express his opposition to the agreement.
The Japanese firm agreed to buy US Steel for approximately $15 billion, but the deal faces an uphill battle until its approval in an election year in the United States.
The White House views steel as critical to national security and Biden said last month that US Steel should remain nationally owned. His opponent in November's presidential election, former President Donald Trump, has vowed to block the deal if he is re-elected.
It is unclear whether Biden plans to use any US regulatory authority to scuttle the deal.
“What worries American politicians is jobs and whether US Steel can develop as an iconic American company in the United States,” Tadashi Imai told reporters last week before taking on his new role on Monday.
“I am convinced that we are the most useful partner to help US Steel grow in the United States,” he added.
Imai, 60, took over as chairman in a management shakeup aimed at lowering the average age of top executives, but breaking with tradition, his charismatic former chairman Eiji Hashimoto has assumed the title of chief executive and will be in charge of guiding the acquisition. .
The proposed deal has drawn strong criticism from some lawmakers and the United Steelworkers (USW) union, which is concerned about potential job losses.
Japan's largest steelmaker has pledged not to cut jobs as a result of the deal, to comply with all agreements between the union and US Steel, as well as to move its own US headquarters to Pittsburgh, where US is headquartered. Steel.
Imai said he was hopeful that Nippon Steel would come to be seen as a company with deep roots in the United States, noting that it has had a presence there since the 1980s and has 4,000 employees in the country, some of whom are also members. of the USW.
“The most important thing and the only thing we can do is talk in good faith with the USW” about investment plans and measures to increase US Steel's competitiveness, he said.
Imai said the acquisition would give US Steel access to Nippon Steel's advanced technologies, such as electromagnetic steel sheet, adding that the Japanese company has about 2,000 steel patents in North America, while US steelmakers in They generally had approximately 200 each.
At home, Imai's main focus will be decarbonization, he said, adding that the company will soon have to make investment decisions on whether to invest in new electric furnaces at two sites: the Kyushu Works Yawata site in southern Japan and the from Setouchi Works Hirohata in Western Japan.
The company must decide on the projects this financial year or next, Imai said.
“It will be a huge investment… but the time is approaching to make a key decision on the technical certainty and predictability of the return on investment.”
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