Nippon Steel Corporation and U. S. Steel Condemn U.S. Government鈥檚 Unlawful Decision to Block Proposed Acquisition of U. S. Steel
Nippon Steel and U. S. Steel have issued a joint statement condemning President Biden's decision to block their proposed acquisition deal. The companies argue that the decision violates due process and CFIUS law, claiming it was politically motivated rather than based on national security concerns. The blocked transaction would have included $2.7 billion in committed investments, including $1 billion for Mon Valley Works and $300 million for Gary Works.
Nippon Steel had offered several mitigation measures, including maintaining a majority of U.S. citizens on the board, keeping key positions held by U.S. citizens, and guaranteeing no reduction in production capacity at U.S. facilities for ten years. The companies state they will pursue legal action to protect their rights and deliver the agreed $55.00 per share value to U. S. Steel stockholders.
Nippon Steel e U. S. Steel hanno emesso una dichiarazione congiunta condannando la decisione del Presidente Biden di bloccare il loro accordo di acquisizione proposto. Le aziende sostengono che la decisione viola il giusto processo e la legge CFIUS, affermando che 猫 stata motivata politicamente anzich茅 basata su preoccupazioni di sicurezza nazionale. La transazione bloccata avrebbe incluso 2,7 miliardi di dollari in investimenti impegnati, tra cui 1 miliardo per Mon Valley Works e 300 milioni per Gary Works.
Nippon Steel aveva offerto diverse misure di mitigazione, tra cui il mantenimento di una maggioranza di cittadini statunitensi nel consiglio, la conservazione delle posizioni chiave occupate da cittadini statunitensi e la garanzia di nessuna riduzione della capacit脿 di produzione negli impianti statunitensi per dieci anni. Le aziende dichiarano che intraprenderanno azioni legali per proteggere i loro diritti e garantire il valore concordato di 55,00 dollari per azione agli azionisti di U. S. Steel.
Nippon Steel y U. S. Steel han emitido una declaraci贸n conjunta condenando la decisi贸n del presidente Biden de bloquear su acuerdo de adquisici贸n propuesto. Las empresas argumentan que la decisi贸n viola el debido proceso y la ley CFIUS, afirmando que fue motivada pol铆ticamente en lugar de estar basada en preocupaciones de seguridad nacional. La transacci贸n bloqueada habr铆a incluido 2.7 mil millones de d贸lares en inversiones comprometidas, incluyendo 1 mil millones para Mon Valley Works y 300 millones para Gary Works.
Nippon Steel hab铆a ofrecido varias medidas de mitigaci贸n, incluyendo mantener una mayor铆a de ciudadanos estadounidenses en la junta, conservar los puestos clave ocupados por ciudadanos estadounidenses y garantizar que no habr铆a reducci贸n de la capacidad de producci贸n en las instalaciones estadounidenses durante diez a帽os. Las empresas declaran que buscar谩n acciones legales para proteger sus derechos y entregar el valor acordado de 55,00 d贸lares por acci贸n a los accionistas de U. S. Steel.
雼堩彴 鞀ろ嫺瓿 U. S. 鞀ろ嫺鞚 氚旍澊霌 雽韱惦牴鞚 鞝滌晥頃 鞚胳垬 瓿勳暯鞚 彀嫧頃 瓴办爼鞐 雽頃 瓿惦彊 靹彪獏鞚 氚滍憸頃橂┌ 鞚措ゼ 牍勲倻頄堨姷雼堧嫟. 霊 須岇偓電 鞚 瓴办爼鞚 鞝侂矔頃 鞝堨皑鞕 CFIUS 氩曥潉 鞙勲皹頄堧嫟氅, 甑皜 鞎堧炒 鞖半牑臧 鞎勲媽 鞝曥箻鞝 霃欔赴鞐愳劀 牍勲’霅 瓴冹澊霛缄碃 欤检灔頃橁碃 鞛堨姷雼堧嫟. 彀嫧霅 瓯半灅電 27鞏 雼煬鞚 韴瀽毳 韽暔頄堨溂氅, 鞐赴鞐愲姅 Mon Valley Works鞐 雽頃 10鞏 雼煬鞕 Gary Works鞐 雽頃 3鞏 雼煬臧 韽暔霅╇媹雼.
雼堩彴 鞀ろ嫺鞚 鞚挫偓須岇棎 氙戈淡 鞁滊鞚 雽雼れ垬毳 鞙犾頃橁碃, 欤检殧 歆侅渼毳 氙戈淡 鞁滊鞚 鞙犾頃橂┌, 氙戈淡 鞁滌劋鞐愳劀 10雲勱皠 靸濎偘 電ル牓鞚 臧愳唽鞁滍偆歆 鞎婈矤雼る姅 鞐煬 鞕勴檾 臁办箻毳 鞝滌晥頄堨姷雼堧嫟. 霊 須岇偓電 鞛愳偓鞚 甓岆Μ毳 氤错樃頃橁碃 欤茧嫻 55.00雼煬鞚 頃╈潣霅 臧旃橂ゼ U. S. 鞀ろ嫺 欤检＜鞐愱矊 鞝勲嫭頃橁赴 鞙勴暣 氩曥爜 臁办箻毳 旆暊 瓴冹澊霛缄碃 氚濏様鞀惦媹雼.
Nippon Steel et U. S. Steel ont 茅mis une d茅claration conjointe condamnant la d茅cision du Pr茅sident Biden de bloquer leur projet d'acquisition. Les entreprises soutiennent que cette d茅cision viole le droit 脿 un proc猫s 茅quitable et la loi CFIUS, affirmant qu'elle 茅tait motiv茅e politiquement plut么t que fond茅e sur des pr茅occupations de s茅curit茅 nationale. La transaction bloqu茅e aurait inclus 2,7 milliards de dollars d'investissements engag茅s, y compris 1 milliard pour Mon Valley Works et 300 millions pour Gary Works.
Nippon Steel avait propos茅 plusieurs mesures d'att茅nuation, notamment le maintien d'une majorit茅 de citoyens am茅ricains au conseil d'administration, le maintien de postes cl茅s occup茅s par des citoyens am茅ricains et la garantie qu'il n'y aurait pas de r茅duction de la capacit茅 de production dans les installations am茅ricaines pendant dix ans. Les entreprises d茅clarent qu'elles engageront des actions en justice pour prot茅ger leurs droits et garantir la valeur convenue de 55,00 dollars par action aux actionnaires de U. S. Steel.
Nippon Steel und U. S. Steel haben eine gemeinsame Stellungnahme abgegeben, in der sie die Entscheidung von Pr盲sident Biden verurteilen, ihr vorgeschlagenes 脺bernahmegesch盲ft zu blockieren. Die Unternehmen argumentieren, dass die Entscheidung das Due Process und das CFIUS-Recht verletzt und behaupten, dass sie politisch motiviert und nicht auf nationalen Sicherheitsbedenken basiert ist. Die blockierte Transaktion h盲tte 2,7 Milliarden Dollar an zugesagten Investitionen umfasst, darunter 1 Milliarde f眉r Mon Valley Works und 300 Millionen f眉r Gary Works.
Nippon Steel hatte mehrere Milderungsma脽nahmen angeboten, darunter die Aufrechterhaltung einer Mehrheit von US-B眉rgern im Vorstand, das Beibehalten von Schl眉sselpositionen durch US-B眉rger und die Garantie, dass es in US-Anlagen 眉ber einen Zeitraum von zehn Jahren keine Reduzierung der Produktionskapazit盲t geben wird. Die Unternehmen erkl盲ren, dass sie rechtliche Schritte einleiten werden, um ihre Rechte zu sch眉tzen und den vereinbarten Wert von 55,00 Dollar pro Aktie an die Aktion盲re von U. S. Steel zu 眉bermitteln.
- Committed investment of $2.7 billion for facility modernization
- Guaranteed share price of $55.00 for U. S. Steel stockholders
- Proposed preservation of U.S. production capacity for 10 years
- Offered substantial national security commitments
- Transaction blocked by U.S. government
- Legal challenges may delay or prevent deal completion
- Political opposition to foreign ownership
- Regulatory uncertainty affecting deal prospects
Insights
Companies will take all appropriate action to protect their legal rights
We are dismayed by President Biden鈥檚 decision to block Nippon Steel鈥檚 acquisition of U. S. Steel, which reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden鈥檚 political agenda. The President鈥檚 statement and Order do not present any credible evidence of a national security issue, making clear that this was a political decision. Following President Biden鈥檚 decision, we are left with no choice but to take all appropriate action to protect our legal rights.
Nippon Steel and U. S. Steel are confident that our transaction would revitalize communities that rely on American steel, including in
Since the outset of the regulatory review process, we have diligently and transparently engaged with CFIUS. The record before CFIUS is abundantly clear that this transaction, with the commitments made by Nippon Steel, would strengthen, not weaken, national security. Yet, it is clear that the CFIUS process was deeply corrupted by politics, and the outcome was pre-determined, without an investigation on the merits, but to satisfy the political objectives of the Biden White House. It is shocking 鈥 and deeply troubling 鈥 that the
To proactively address any concerns that could be raised by CFIUS, Nippon Steel voluntarily committed to various mitigation measures that would be fully enforceable by the
We would like to express our sincere gratitude to the wide range of stakeholders in
*For more information about this acquisition, please refer to the press release on December 18, 2023. (Updated disclosure on December 19, 2023, April 15, 2024, May 3, 2024, May 30, 2024, and December 26,2024)
For inquiries, and media@uss.com
About NSC
NSC is Japan鈥檚 largest steelmaker and one of the world鈥檚 leading steel manufacturers. NSC has a global crude steel production capacity of approximately 66 million tonnes and employs approximately 100,000 people in the world. NSC鈥檚 manufacturing base is in
About U. S. Steel
Founded in 1901, U. S. Steel is a leading steel manufacturer. With an unwavering focus on safety, the Company鈥檚 customer-centric Best for All庐 strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products. The Company also maintains advanced iron ore production and has an annual raw steelmaking capability of 25.4 million net tons. U. S. Steel is headquartered in
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains information regarding U. S. Steel and Nippon Steel that may constitute 鈥渇orward-looking statements,鈥 as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws, that are subject to risks and uncertainties. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words 鈥渂elieve,鈥 鈥渆xpect,鈥 鈥渋ntend,鈥 鈥渆stimate,鈥 鈥渁nticipate,鈥 鈥減roject,鈥 鈥渢arget,鈥 鈥渇orecast,鈥 鈥渁im,鈥 鈥渟hould,鈥 鈥減lan,鈥 鈥済oal,鈥 鈥渇uture,鈥 鈥渨ill,鈥 鈥渕ay鈥 and similar expressions or by using future dates in connection with any discussion of, among other things, statements expressing general views about trends, events or developments that we expect or anticipate will occur in the future, potential changes in the global economic environment, anticipated capital expenditures, the construction or operation of new or existing facilities or capabilities and the costs associated with such matters, as well as statements regarding the proposed transaction, including the timing of the completion of the transaction. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements include all statements that are not historical facts, but instead represent only U. S. Steel鈥檚 beliefs regarding future goals, plans and expectations about our prospects for the future and other events, many of which, by their nature, are inherently uncertain and outside of U. S. Steel鈥檚 or Nippon Steel鈥檚 control and may differ, possibly materially, from the anticipated events indicated in these forward-looking statements. Management of U. S. Steel or Nippon Steel, as applicable, believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. In addition, forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from U. S. Steel鈥檚 or Nippon Steel鈥檚 historical experience and our present expectations or projections. Risks and uncertainties include without limitation: the ability of the parties to consummate the proposed transaction, on a timely basis or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement and plan of merger relating to the proposed transaction (the 鈥淢erger Agreement鈥); litigation related to the transaction; the risk that the parties to the Merger Agreement may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the proposed transaction; certain restrictions during the pendency of the proposed transaction that may impact U. S. Steel鈥檚 ability to pursue certain business opportunities or strategic transactions; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of U. S. Steel鈥檚 common stock or Nippon Steel鈥檚 common stock or American Depositary Receipts; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk of any litigation relating to the proposed transaction; the risk that the proposed transaction and its announcement could have an adverse effect on the ability of U. S. Steel or Nippon Steel to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; and the risk the pending proposed transaction could distract management of U. S. Steel. U. S. Steel directs readers to its Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and the other documents it files with the SEC for other risks associated with U. S. Steel鈥檚 future performance. These documents contain and identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements.
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NSC Contacts
Media
For inquiries,
Investors
ir@jp.nipponsteel.com
Yuichiro Kaneko / +81-80-9022-6867 / kaneko.yc3.yuichiro@jp.nipponsteel.com
Yohei Kato / +81-80-2131-0188 / kato.rk5.yohei@jp.nipponsteel.com
General Inquiries (
Nippon Steel North America, Inc. / +1 (713) 654 7111
NSCMedia@teneo.com
Robert Mead / +1 (917) 327 9828 / Robert.Mead@teneo.com
Jack Coster / +1 (207) 756 4586 / Jack.Coster@teneo.com
U. S. Steel Contacts
Media
Corporate Communications
T- 412-433-1300
E- media@uss.com
Kelly Sullivan / Ed Trissel
Joele Frank, Wilkinson Brimmer Katcher
T- 212-355-4449
Investors
Emily Chieng
Investor Relations Officer
T 鈥 (412) 618-9554
E 鈥 ecchieng@uss.com
Source: United States Steel Corporation
FAQ
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