Nippon Steel stands by agreement with US Steel despite Biden's disapproval

Nippon Steel Responds to President Biden's Concerns Over US Steel Acquisition In response to President Biden's concerns about Nippon Steel's proposed acquisition of US Steel, the Japanese company released a statement defending the deal. They highlighted their plans to increase financial investment and implement advanced technologies to enhance quality and competitiveness for customers, ultimately advancing American priorities. Additionally, Nippon Steel emphasized their commitment to strengthening American supply chains and economic defenses against China, as reported by Bloomberg.

Following Biden's remarks, US Steel experienced a significant drop in stock prices, falling as much as 11% before closing down 6.3% on Thursday. The stock is now trading below Nippon Steel's offer of $55 per share, indicating growing investor concerns about the deal's future.

Biden's comments also brought attention to the influential role of the United Steelworkers union and its leader, David McCall. The president reportedly reached out to McCall on Thursday to assure him that he supports the steelworkers. Nippon Steel stated that they have made substantial commitments to the USW, including guarantees for job and pension security, capital investment, technology sharing, financial reporting, and the ability to enforce contractual obligations post-closing.