Nippon Steel logo is displayed at the company's headquarters in Tokyo.Issei Kato/Reuters
Nippon Steel told U.S. government officials it had proposed adopting a binding national security agreement to address Biden administration concerns about its proposed $14.9 billion acquisition of U.S. Steel, according to a letter seen by Reuters.
Nippon told the Committee on Foreign Investment in the United States in a joint letter on Tuesday with U.S. Steel it would commit to maintaining the American steel company’s current production and would only be able to reduce production capacity if it was “approved by a majority of the independent U.S. citizen directors of the U.S. Steel board. U.S. Steel would also maintain an internal officer-level “trade committee” comprised of U.S. citizens, Nippon said.
Nippon also disclosed it had hired former U.S. House majority leader Dick Gephardt to assist in its efforts to reach an agreement with the United Steelworkers.
Nippon Steel's proposed $14.9-billion takeover of U.S. Steel would create national security risks because it could hurt the supply of steel needed for critical transportation, construction and agriculture projects, the U.S. said in a letter sent to the companies.
Reuters