Nippon Steel Corp. said Friday it has sent a letter to U.S. President Joe Biden, as its $14.1 billion buyout of United States Steel Corp. is at risk of falling through.
The letter, signed by Nippon Steel Chairman and CEO Eiji Hashimoto and U.S. Steel President and CEO David Burritt, was sent on Sunday. Biden is reportedly preparing to block the deal, citing potential national security risks related to foreign ownership.
Nippon Steel declined to provide details of the letter.
A rally by U.S. Steel employees is held outside the United Steel Tower in downtown Pittsburgh to display their support for the transaction with Nippon Steel on Sept. 4, 2024. (AP/Kyodo)
The buyout plan, announced in December, has become a political issue in the United States, as Biden and Vice President Kamala Harris, the Democratic nominee, are against the deal, as is former President Donald Trump, her Republican opponent, ahead of the November presidential election.
The Pittsburgh-based steel company and its shareholders are supportive of the takeover. But the powerful United Steelworkers union, headquartered in Pennsylvania, a battleground state for the country’s presidential election, is strongly opposed to the plan.
Nippon Steel Vice President Takahiro Mori met members of the U.S. committee on foreign investment in Washington earlier this week to discuss the acquisition plan.
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