Nippon Steel Sweetener Offer for US Steel

Japan’s Nippon Steel pledged this week to invest an additional $1.3 billion in United States Steel Corporation if the takeover of the famous US steel maker is allowed, according to local reports.

Pittsburgh-based US Steel shareholders last December accepted an offer from Nippon Steel to buy the company in an all-cash deal valued at $14.9 billion, including debt. But a final deal has been stalled by widespread political opposition to a foreign takeover of this important American asset, as well as opposition from the United Steelworkers – the company’s main union.

The Japanese company had already confirmed it would invest $1.4 billion to upgrade US Steel’s manufacturing facilities following the acquisition as part of its initial deal. This latest offer aims to sweeten the deal, with an additional $1 billion to be made available to improve the competitiveness of Pennsylvania’s Mon Valley Works by upgrading facilities to produce higher quality auto steel and create additional jobs. The remaining $300 million will be invested in the Gary Works in Indiana to upgrade the blast furnace and extend the life of the plant by up to 20 years.

Nippon Steel Vice President Takahiro Mori said in a statement: “We seek to provide American customers with the highest quality American-made steel products, powered by American workers, while ensuring the supply of American steel for the future.”

“Nippon Steel Sweetening Offer for US Steel” was created and originally published by Just Auto, a brand owned by GlobalData.

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