U.S. Steel Warns Nippon Deal Failure Could Threaten Thousands of Jobs

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Nippon Steel has pledged that U.S. Steel will be managed by a majority of American citizens if its $14.9 billion takeover bid is approved. The Japanese company, facing opposition from both U.S. politicians and labor unions, made this commitment after Vice President Kamala Harris insisted that U.S. Steel should remain "American-owned and operated."

As part of its offer, Nippon Steel promised that U.S. Steel’s board would consist mostly of U.S. citizens, with three independent directors also being Americans. Key management roles would be filled by U.S. executives, and the company would remain under the control of Nippon Steel North America, a subsidiary that has operated in the U.S. for over 50 years.

The bid has encountered strong bipartisan opposition, with both Harris and former President Donald Trump pledging to block the deal. Nippon Steel has been working to reassure lawmakers and unions, promising a $1.3 billion additional investment in U.S. plants, alongside previous commitments of $1.4 billion. The company also vowed not to move operations outside the U.S. or lay off workers.

Nippon Steel argues that its investment would revitalize the American steel industry and benefit workers and local communities, particularly in the steel-producing Rust Belt.