On December 18, 2023, Japan-based Nippon Steel Corporation (NSC) and United States Steel Corporation (USS) announced that NSC would acquire USS in a deal valued at 14 billion US dollars. NSC’s friendly offer for NSC was higher than those of other bidders and was strongly supported by USS’s management. NSC planned to share its technologies with USS and invest in updating USS facilities to increase quality, reduce costs, and improve energy efficiency. It emphasized that no layoffs would occur at USS due to the deal. NSC also touted the deal as one that would build a strong free-market competitor in an industry which was dominated by Chinese producers. Yet, the deal was met with opposition by the United Steelworkers Union (USW) and American politicians. President Biden, Vice President Harris, and former President Trump were all against the deal. NSC had invested in public relations activities and lobbying in the United States. It had taken numerous actions to address the concerns of the USW, the antitrust concerns of the U.S. Justice Department, and the national security concerns raised by the U.S. Committee on Foreign Investment in the U.S. However, the deal had continued to come under attack during the U.S. presidential election. Pennsylvania, where USS was headquartered, was a battleground state. By mid-November 2024, the presidential election was over with Donald Trump the winner. Still, almost a year after the acquisition had been announced, the deal remained in limbo. NSC expected that it could finally have a constructive dialog with the USW and hoped that a decision from the federal government would be made before the end of the year. Would a lame duck Biden administration approve the deal, or if further delayed, what were the chances that President Elect Trump would reconsider his opposition? NSC remained optimistic and persistent. In an interview with a local newspaper in Pittsburgh, Takahiro Mori, the NSC executive in charge of closing the deal, had commented: “I will never give up…This is good for the region, good for the community, good for U.S. Steel and good for the American economy as a whole.” Still, there was no guarantee that the acquisition would be approved.
Derek Lehmberg (Thu,) studied this question.