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Nippon Steel said its proposed acquisition of U.S. Steel won't cause layoffs or plant closures
Nippon Steel said Friday that its proposed $14.9 billion acquisition of U.S. Steel would not result in any layoffs or plant closures as the pending deal faces opposition from President Biden and scrutiny from unionized steelworkers.
Japan-based Nippon Steel, which announced the proposed acquisition in December, released a statement about the deal that looked to address the political concerns of the president and the United Steelworkers (USW) union about its potential impact on workers.
"As part of our proposal to the USW, at the close of the transaction we will commit that U.S. Steel would additionally invest $1.4B, increase the current CBA by over 140%, and there will be no layoffs or plant closures as a result of the transaction," Nippon Steel said in the statement. Reuters reported that the company initially indicated there wouldn't be layoffs or plant closures before September 2026, then reissued the statement to clarify that none would occur due to the deal.
The move comes after Biden on Thursday said in a statement that "U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated."
www.foxbusiness.com
Nippon Steel said Friday that its proposed $14.9 billion acquisition of U.S. Steel would not result in any layoffs or plant closures as the pending deal faces opposition from President Biden and scrutiny from unionized steelworkers.
Japan-based Nippon Steel, which announced the proposed acquisition in December, released a statement about the deal that looked to address the political concerns of the president and the United Steelworkers (USW) union about its potential impact on workers.
"As part of our proposal to the USW, at the close of the transaction we will commit that U.S. Steel would additionally invest $1.4B, increase the current CBA by over 140%, and there will be no layoffs or plant closures as a result of the transaction," Nippon Steel said in the statement. Reuters reported that the company initially indicated there wouldn't be layoffs or plant closures before September 2026, then reissued the statement to clarify that none would occur due to the deal.
The move comes after Biden on Thursday said in a statement that "U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated."
Nippon Steel says US Steel acquisition wouldn't cause layoffs, plant closures
Nippon Steel said that its planned acquisition of U.S. Steel for nearly $15 billion wouldn't cause layoffs or plant closures amid resistance from the Biden administration and unions.
