Companies

U.S. Steel Buyout Aimed at Boosting Japan Growth: Nippon Steel Chief

AP
This is a portion of US Steel’s Edgar Thomson Plant in Braddock, Pa., on Monday, Dec. 18, 2023. U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion.

Jiji Press

16:50 JST, December 19, 2023

TOKYO (Jiji Press)—Nippon Steel Corp. President Eiji Hashimoto voiced hopes Tuesday that the leading Japanese steelmaker’s acquisition of United States Steel Corp. will help Japan grow stronger again.

Nippon Steel “is eager to establish a global network for a new era by having a foothold in the world’s biggest steel market, which is expected to expand further,” Hashimoto told an online press conference held a day after the 2-trillion-yen deal to buy up the U.S. steel giant was announced.

He specifically expressed willingness to work together with U.S. Steel in the field of decarbonization.

Nippon Steel expects its largest-ever acquisition to complete between April and September next year, following approval by relevant authorities.

According to the World Steel Association, the Japanese and U.S. steelmakers produced a combined 58.86 million tons in 2022, coming in third behind China’s Baosteel Group Corp. and Luxembourg’s ArcelorMittal.

As for the United Steelworkers’ statement slamming the deal and calling on U.S. regulators to carefully scrutinize it, Hashimoto said his company will calmly listen to various opinions.

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