A spokesperson for Nippon Steel Corporation stated that the company and U.S. Steel Corporation sent a letter to U.S. President Biden last Sunday discussing their merger plans.
Nippon Steel announced in December last year that it would spend $14.9 billion to acquire US Steel Corporation. However, this transaction has faced strong opposition within the United States and is still under investigation by the Committee on Foreign Investment in the United States (CFIUS). Previously, there were media reports that Biden was preparing to veto this deal.
A spokesperson for Nippon Steel did not disclose specific details about the contents of the letter, only stating that it was signed by Nippon Steel CEO Eiji Hashimoto, US Steel CEO David Burritt, and other executives.
If the acquisition of US Steel is successful, Nippon Steel is expected to become the world's second-largest steel producer. Although the likelihood of a successful merger is decreasing, the two companies are still working hard to facilitate the transaction.
The United Steelworkers of America (USW) opposes the acquisition deal by Nippon Steel. They believe that Nippon Steel has not made sufficient commitments to ensure that its unionized factories can continue to operate, nor has it promised to comply with existing contract terms.
According to regulatory documents submitted in January this year, Nippon Steel has promised to take all necessary actions to facilitate the merger, and if the acquisition fails, will pay $565 million in "breakup fees" to US Steel.
According to insiders, a senior executive from Nippon Steel and Burritt met with US government officials on Wednesday in an attempt to salvage the deal. The outcome of the meeting is currently unclear.
According to media reports, CFIUS wrote to two companies at the end of last month, stating that the deal would pose a national security risk as it could damage the steel supply needed for critical transportation, infrastructure, construction, and agricultural projects.
The Japan Federation of Economic Organizations and some American business groups sent a letter to US Treasury Secretary Yellen on Wednesday, expressing concerns that the deal may be subject to political pressure in terms of national security review.
The headquarters of US Steel is located in Pittsburgh, Pennsylvania, which is one of the key swing states with significant influence on the outcome of the US election. Both Democratic and Republican presidential candidates have clearly expressed their opposition to the US steel acquisition in order to win the votes of workers.