Nippon Steel announced on Friday that it will postpone the completion of its acquisition of United Steel Corporation by three months until December. The acquisition has become a hot topic in the run-up to the November presidential election.
Republican presidential candidate Donald Trump has vowed to block the company's $14.1 billion takeover, while President Joe Biden has also expressed support for labor unions opposing the Japanese steelmaker's takeover.
U.S. Steel's Edgar Thomson Plant near Pittsburgh, Pennsylvania, taken on April 12, 2024 (Kyodo News)
Nippon Steel said the decision was a result of consideration of the potential timing of U.S. regulatory approval, but denied it was prompted by the political situation.
The planned acquisition will enable U.S. Steel to produce more advanced and environmentally sustainable steel for U.S. customers and “strengthen the resilience of U.S. industry to the Chinese threat,” the companies said. said.
He also said the U.S. company's headquarters will remain in Pittsburgh, its name will not change and its production and jobs will remain in the United States.
U.S. Steel shareholders approved the transaction.
The proposed acquisition also requires approval from the Committee on Foreign Investment in the United States, which assesses whether a particular transaction poses a national security threat.
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