Nippon Steel said Friday that its proposed $14.9 billion acquisition of US Steel would not result in layoffs or plant closures as the pending deal faces opposition from Nippon Steel. President Biden and supervision of unionized steelworkers.

Japan-based Nippon Steel, which produces the proposed acquisition released a statement on the deal in December that was intended to address political concerns of the president and the United Steelworkers (USW) union about its potential impact on workers.

“As part of our proposal to USW, we will commit at closing that US Steel would invest an additional $1.4 billion, increase the current CBA by more than 140%, and that there would be no layoffs or plant closures as consequence of the transaction,” Nippon Steel said in the statement. Reuters reported that the company initially indicated that there would be no layoffs or plant closures before September 2026, then reissued the statement to clarify that this would not happen because of the deal.

The move comes after Biden said in a statement Thursday that “US Steel has been an iconic American steel company for more than a century, and it is critical that it remains a domestically owned and operated American steel company.”

BIDEN VOTES OUT against the sale of American steel to a Japanese company

Nippon Steel said its proposed acquisition of US Steel will not result in layoffs or plant closures. (Justin Merriman/Bloomberg via / Getty Images)

The Biden administration had indicated in December that the proposed deal merited “serious scrutiny” given U.S. Steel’s role in producing steel critical to national security. Japan is a treaty ally of the US under a mutual security agreement that dates from 1951.

The proposed deal is currently under review by the Committee on Foreign Investment in the US (CFIUS), an entity within the Treasury Department that would have the authority to recommend that the deal be blocked. Nippon steel said it is “making progress through regulatory review, including CFIUS, while relying on the rule of law, objectivity, and due process we expect from the U.S. government.”

Ticker Security Last Change Change %
X UNITED STATES STEEL CORP. 38.86 +0.61 +1.59%
NPSCY NIPPON STEEL CORP. 8.06 -0.02 -0.25%

US Steel said in a filing with the regulator that it expects the transaction to close later this year, adding that the deal is an “exciting” development for the two companies and that if it goes through, “NSC and US Steel will be their leading will share position. technologies and manufacturing capabilities to lead innovation and digital transformation in steelmaking for the benefit of our customers.”

US steelworkers outraged over billion-dollar deal to ‘sell out’ workers to a foreign entity

President Joe Biden Production

President Biden expressed his opposition to Nippon Steel’s planned takeover of US Steel. (Brendan Smialowski/AFP via / Getty Images)

Nippon Steel’s statement also referenced the company’s history of operating its own facilities in the US and its work with US companies in the United States. steel industry supply chain. The company noted that it has “successfully operated facilities with approximately 4,000 U.S. employees, including 620 employees represented by USW (such as Standard Steel in Burnham, PA, and Wheeling Nippon Steel in Follansbee, WV.)”

Nippon Steel’s press release added that the company “has been a friend of the U.S. for more than 70 years by importing metallurgical coal from U.S. states” including Pennsylvania, West Virginia, Virginia and Alabama, which it expects to continue.

The company added that “Nippon Steel, through increased financial investments and the contribution of our advanced technologies to US Steel, will advance US priorities by driving greater quality and competitiveness for customers in the critical industries that depend on American steel, while American supply chains and economic defense against China.”

UNION: MEETING BETWEEN UNITED STEELWORKERS AND NIPPON GOING NOWHERE

American steel mill in Pennsylvania

US Steel plans to move forward with its acquisition by Nippon Steel. (Justin Merriman/Bloomberg via / Getty Images)

The United Steelworkers (USW) union. said in a press release Thursday after President Biden’s announcement that the union “shares his concerns about the long-term impact of the sale on our economic and national security.”

“Allowing one of our nation’s largest steel producers to be purchased by a foreign-owned company leaves us vulnerable when it comes to meeting both our defense and critical infrastructure needs,” the USW statement continued. “The President’s statements should put an end to the debate: US Steel must ‘remain domestically owned and operated.’”

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Former President Donald Trumpthe presumptive presidential nominee of the Republican Party, expressed his opposition to the deal in late January, saying he would “immediately block it” and adding: “We saved the steel industry. Now US Steel is being bought by Japan. So terrible.”

Breck Dumas and Reuters of FOX Business contributed to this report.

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