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Nippon Steel (OTCPK:NISTF) weighed in Thursday, defending its proposed acquisition of US Steel (NYSE:X) after President Biden said the company should remain American owned and operated.
“Through increased financial investment and the contribution of our advanced technologies to the United States Steel, Nippon Steel will advance American priorities by promoting greater quality and competitiveness for customers…while strengthening America’s supply chains and economic defenses against China,” the Japanese company said, according to Bloomberg.
US Steel (X) fell 11% on Thursday before the close. -6.3%which is now trading sharply below Nippon’s (OTCPK:NISTF) bid of $55 per share, showing that investors are increasingly concerned about the future of the operation.
Biden’s comments also highlighted the influential position held by the United Steelworkers union and its leader, David McCall, whom the president called Thursday to reiterate that he “has the steelworkers’ backs,” the White House said in a statement. Note.
Nippon (OTCPK:NISTF) said it has “provided significant commitments to the USW… These include job security, pension security, capital investment, technology sharing, financial reporting and the ability to comply with contractual obligations after closing”.
Cleveland-Cliffs (CLF) CE official Lourenco Goncalves said he will consider making another bid – with union support – for US Steel (X), albeit at a significantly lower price than the Nippon’s (OTCPK:NISTF) existing offering.