Nippon Steel CEO doubles pledge to acquire US Steel

Japan Nippon Steel The CEO confirmed on Tuesday that the company will not abandon its acquisition United States steela day after filing a lawsuit against the Joe Biden administration for blocking the proposed merger.

US Steel and Nippon Steel announced on Monday that they had done so Two lawsuits were filed After the Biden administration’s decision to prevent Nippon Steel’s $14.9 billion acquisition of the American steel maker.

In a statement accompanying the lawsuits, the companies said they remained confident that the deal was “the best path forward to secure the future of US Steel” and stressed their right to pursue a merger.

At a press conference on Tuesday, Eiji Hashimoto, Chairman and CEO of Nippon Steel, reiterated this position.

“There is no reason or need to give up (the takeover). We simply cannot accept it,” Hashimoto said. Press conference.

According to a Reuters translation, Hashimoto stressed that he would never give up expanding his operations in the United States, and did not consider any alternative plan other than the company’s current pursuit of US Steel.

last friday, Biden has been officially banned Japan’s Nippon Steel has agreed to acquire US Steel, fulfilling its pledge to keep the more than a century-old industrial name under US ownership.

The two companies resorted to the federal court to cancel Biden’s decision.

In a statement issued Monday, the parties alleged that Biden influenced the decision of the Committee on Foreign Investment in the United States, or CFIUS, which evaluates foreign investments for potential national security threats, and violated companies’ right to impartial review.

“As a result of President Biden’s undue influence to advance his political agenda, the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) failed to conduct a good faith regulatory review process focused on national security.” Companies said.

The White House did not immediately respond to CNBC’s request for comment.

Hashimoto added that Nippon Steel will explain to the new US administration how the acquisition will strengthen US Steel, as well as the broader US industry.

The next president Donald Trump He has too Pledge to ban Nippon Steel’s planned purchase of US Steel on various occasions.

“Why would they want to sell US Steel now when tariffs would make it a more profitable and valuable company?” Trump posted on his social media platform Truth Social on monday.

“The real reason the Nippon Steel-US Steel merger collapsed is primarily political,” CreditSights analysts said in a report following the lawsuits, stressing that the timing of the deal was “inadequate” for Nippon Steel given how it developed over the period. Presidential election year.

The research firm also stressed that although CFIUS expressed some reservations, it did not make a formal recommendation on whether the takeover should go ahead or not.

Last week, Nippon Steel offered US government grants Veto power over any reductions in US Steel’s production capacity.

Nippon Steel shares fell by 1.74% during Japanese trading hours.