Prime Highlights:

Takahiro Mori, the top-ranked negotiator at Nippon Steel, toiled day and night to revive the $14.9 billion U.S. Steel acquisition.

While President Biden was originally opposed to the action, recent political news suggests potential support from erstwhile President Trump.

Key Facts:

The bid includes a $14.1 billion cash offer and the takeover of $800 million debt.

Nippon Steel also agreed to keep U.S. Steel’s Pittsburgh headquarters and honor current labor agreements.

Background Facts:

Japan’s largest steelmaker, Nippon Steel, in December 2023 announced plans to take over U.S. Steel in a $14.9 billion takeover. The offer was in the form of a $14.1 billion cash offer along with the assumption of $800 million of debt. The acquisition was intended to strengthen Nippon Steel’s global footprint and upgrade U.S. Steel’s aging infrastructure. As per the agreement, Nippon Steel committed to maintaining U.S. Steel’s Pennsylvania headquarters and honoring existing labor pacts, including a $2.7 billion investment in Pennsylvania-based and Indiana-based plants.

But the deal met with political resistance. In January 2025, President Joe Biden vetoed the transaction citing national security interests and calling for keeping U.S. steel manufacturing in domestic control. The United Steelworkers union also opposed the agreement, fearing the danger of job loss and insufficient consultation during the course of negotiation.

Amidst it all hardship, Nippon Steel vice chairman and executive vice president Takahiro Mori led an unrelenting charge to revive the pact. He sat down with U.S. local leaders, workers, and lawmakers to allay fears and build momentum, including private meetings with local officials in neighborhoods surrounding U.S. Steel’s Irvin plant. Mori’s persistent diplomacy began to yield results when former President Donald Trump, who had initially opposed the deal, signaled possible support, noting the potential for job preservation and investment growth. This shift has reignited optimism for the acquisition’s future, with Nippon Steel committed to continuing negotiations to overcome remaining barriers and strengthen the U.S. steel industry.

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