Nippon Steel Makes Final Push to Win Over US Workers in $14.1 Billion US Steel Bid

In a last-ditch effort to secure approval for its $14.1 billion takeover of US Steel, Nippon Steel Corp. has clarified its spending plans for US mills owned by the Pittsburgh-based steelmaker, hoping to win over workers and politicians who have expressed concerns about the deal.

On Monday, Nippon Steel sent a letter to US Steel employees outlining its commitment to a $1.4 billion capital expenditure plan for US Steel’s plants, with a focus on transparency regarding how and when the funds will be allocated. This letter follows recent discussions with United Steelworkers (USW) leadership, who had requested more details about Nippon Steel's planned investments.

"We listened carefully to the USW's requests and have addressed all their concerns in our recent commitment letter to USW President David McCall," Nippon Steel said in the statement. "We are fully committed to ensuring the long-term success of US Steel’s operations in the U.S. and supporting our workers.”

Despite the Japanese steelmaker’s efforts, USW leadership has remained skeptical, and it remains uncertain whether this new commitment will change their stance. The USW, which has long opposed the deal, continues to express concerns about job security and the future of steelmaking in Pennsylvania, a state where US Steel has major operations.

“This communication, like those that came before it, remains riddled with the same exceptions and conditions, allowing Nippon to back out or shift course for no other reason than changing business plans,” said USW President David McCall in response to Nippon Steel’s latest letter. McCall has been vocal in his opposition to the deal, and while he acknowledged some progress in the talks, he remains unconvinced.

The new letter comes after multiple rounds of negotiations, including a recent meeting brokered by Pennsylvania Governor Josh Shapiro between Nippon Steel Vice President Takahiro Mori and McCall. While Governor Shapiro has not publicly taken a stance on the deal, his office has confirmed he remains engaged in discussions, signaling the importance of the deal to local political leaders.

The deal has faced stiff opposition from both political leaders and labor unions, with even President Joe Biden and President-elect Donald Trump voicing concerns over the potential sale of a major US steelmaker to a foreign company. The Committee on Foreign Investment in the United States (CFIUS) is currently reviewing the proposed acquisition, with regulatory approval still pending.

Despite these hurdles, US Steel’s stock price has been rising in response to Nippon Steel’s offer. On Monday, shares of US Steel surged by as much as 3.3% to $39.70 per share, inching closer to Nippon Steel's $55-a-share bid. Nippon Steel’s stock also saw a significant rise in Tokyo, increasing by 3.4%, its biggest intraday gain in a month.