Japan’s Nippon Steel Corporation this week promised to invest an additional US$1.3bn into United States Steel Corporation if its takeover of the iconic US steelmaker is allowed to go ahead, according to local reports.
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By GlobalDataPittsburgh-based US Steel’s shareholders accepted an offer last December from Nippon Steel to acquire their company in a cash deal valued at US$14.9bn, including debt. But a final deal has been held up by widespread political opposition to a foreign takeover of this important US asset, as well by opposition by United Steelworkers – the company’s main labour union.
The Japanese company had already confirmed it would invest US$1.4bn to upgrade US Steel’s production facilities following the acquisition, as part of its original deal. This latest offer is aimed at sweetening the deal, with an additional US$1bn to be made available to improve the competitiveness of the Mon Valley Works in Pennsylvania by upgrading facilities to produce high-grade automotive steel and create additional jobs. The remaining US$300m would be invested in the Gary Works in Indiana to upgrade the blast furnace and extend the plant’s operational life by up to 20 years.
Nippon Steel’s vice chairman Takahiro Mori said in a statement: “We seek to provide the highest-quality American-made steel products to American customers, fuelled by American workers, while also securing American steel supply for the future.”
