Last December, Japanese steel giant Nippon Steel announced plans to acquire U.S. Steel for 2 trillion yen (approximately $14.9 billion). The deal met bipartisan opposition in the U.S., and one year later, its fate remains uncertain.
The original deadline for the acquisition is set for the end of December. As the date approaches, Nippon Steel announced on Thursday that it had extended the transaction’s closing deadline. The company’s executives have been reaching out to U.S. policymakers, making a final push to save the deal.
Nippon Steel’s Final Push
On Monday, the Committee on Foreign Investment in the United States (CFIUS) handed its decision on Nippon Steel’s bid for U.S. Steel to President Joe Biden, who has 15 days to decide whether to approve or block the deal.
However, the transaction’s fate appears precarious, with both current President Biden and President-elect Trump having publicly opposed it.
In an effort to salvage the deal, Nippon Steel pushed the acquisition deadline from the third or fourth quarter of 2024 to the first quarter of 2025. Nippon Steel executives expressed confidence that the acquisition would protect and grow U.S. Steel.
On Wednesday, Nippon Steel’s president stated that the proposal had gained support in regions where U.S. steel plants operate. He emphasized Nippon Steel’s commitments to addressing CFIUS concerns about national security and noted progress in mutual understanding.
“We have substantial support for the acquisition in regions where U.S. Steel plants are located. I hope President Biden understands the economic value of this deal for the U.S.,” the president said.
Appeals for Biden’s Approval
On Wednesday, Nippon Steel submitted a letter to President Biden signed by 24 U.S. municipal officials from areas where U.S. Steel operates, urging him to approve the transaction.
The letter stated: “We respectfully request that you listen to the voices of steelworkers and others whose economic security is tied to U.S. Steel—they are unanimously calling for this deal to be approved.”
To win support, Nippon Steel has pledged to protect American jobs and invest in U.S. facilities critical to future growth. Both companies initially planned to complete the transaction by the end of 2024. However, the deal has faced strong opposition from the United Steelworkers (USW).
This week, the USW released a statement reiterating its opposition. After two meetings with Nippon Steel executives last week, the union claimed that Nippon Steel does not prioritize the long-term security of U.S. steel plants and urged President Biden to maintain U.S. ownership and operation of the company.
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