U.S. Steel's Edgar Thomson Works steel plant in Braddock, Pennsylvania, on Tuesday, December 19, 2023.
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a japanese steel manufacturer seek to gain United States Steel Corporation U.S. citizens will form a majority of the board, it said on Wednesday, as the $15 billion proposal faces growing political opposition ahead of November's U.S. election.
In a statement detailing the governance plan, Nippon Steel It said the three independent directors on the board will be U.S. citizens, as will “core senior executives.”
Facing resistance from United Steelworkers union, president Joe Biden Nippon Steel, Japan's largest steelmaker, said the acquisition would benefit the company and its employees as well as the United States and Japan. main ally of the united states.
“Nippon Steel continues to believe that this transaction will strengthen the United States by strengthening U.S. Steel and its domestic production capabilities, bringing cutting-edge technologies to the United States, and ultimately making the U.S. industrial base and supply chains more resilient and better positioned. Safety. said in a statement.
Vice President Kamala HarrisThe Democratic presidential candidates spoke out against the deal for the first time on Monday at a joint rally with Biden in the key battleground state of Pennsylvania.
“Maintaining a strong U.S. Steel is critical to our country,” Harris said in Pittsburgh, where U.S. Steel is headquartered. “I strongly agree with President Biden that U.S. Steel should continue to be owned and operated by the United States.”
The United Steelworkers union said the sale could have significant impacts on workers, supply chains and U.S. national security, and the union welcomed Harris' opposition, saying she had “made clear once again that she will always support steelworkers.”
former president Donald TrumpThe Republican presidential candidate last month reiterated a February pledge to block the deal if elected. Biden first expressed opposition to the purchase in March.
U.S. Steel said in a statement Monday that it remains “committed to a transaction with Nippon Steel that is the best deal for our employees, shareholders, communities and customers.”
Nippon Steel said on Wednesday it would prioritize U.S. Steel's production to meet demand in the U.S. market and the company's headquarters would remain in Pittsburgh.
The statement said that U.S. citizens will form an internal official-level “trade committee” that will make recommendations to the U.S. Steel Council on trade matters and record the decision-making process, and decisions on trade matters will require approval by a majority of members. The U.S. directors “ensure that such decisions are made without interference from Nippon Steel.”
The company has also previously said that the deal announced in December would not result in layoffs or factory closures.
Nippon Steel said the governance policies announced on Wednesday were designed to “ensure the benefits of the transaction while maintaining U.S. Steel's status as an iconic American company.”