US Steel expects to close plants if $14.9 billion deal with Nippon collapses, WSJ reports

(Reuters) — US Steel ( X ) would close plants and likely move its headquarters from Pittsburgh if its $14.9 billion acquisition by Nippon Steel ( NPSCY , 5401.T ) falls through, it The Wall Street Journal reported on Wednesday, citing an interview with the company. CEO.

The steelmaker’s CEO, David Burritt, told the WSJ that the nearly $3 billion that Nippon has pledged to invest in US Steel’s older plants is critical to staying competitive and keeping workers’ jobs.

“We wouldn’t do that if the deal falls through,” Burritt told the WSJ. – I don’t have the money.

The deal has come under increasing criticism from US politicians and the United Steelworkers union since it was announced in December.

On Tuesday, Democratic presidential candidate Kamala Harris said US Steel should remain in national hands, while Republican candidate Donald Trump said he would take steps to block the deal if elected.

US Steel and Nippon Steel tried to play down concerns about the deal and touted its benefits.

Earlier on Wednesday, Nippon said core senior management as well as most of the US company’s board members would be US citizens if the deal goes ahead.

Burritt told the WSJ that the expanded Arkansas mill will allow the company to close Mon Valley, its last steelmaking operation in Pittsburgh. The company would likely look to move its headquarters to the south as well.

The deal has received all non-US regulatory approvals and the green light from US Steel shareholders. It is now in the process of regulatory review in the United States.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Krishna Chandra Eluri)