Arbitration panel backs Nippon Steel's acquisition of U.S. Steel

A frontal view of the Great Lakes Works United States Steel Corp in Michigan US Sept 11 2024 REUTERS-Yonhap — A frontal view of the Great Lakes Works United States Steel Corp. in Michigan, U.S., Sept. 11, 2024. REUTERS-Yonhap

SEOUL, September 26 (AJP) - An arbitration panel has ruled in favor of Japan's Nippon Steel Corp.'s proposed acquisition of United States Steel Corp., despite opposition from the steelworkers' union, the U.S. company said on Wednesday.

The non-binding decision was made by a Board of Arbitration, whose members were chosen by U.S. Steel and the United Steelworkers union. The union had previously called for scrutiny of the deal, citing financial concerns.

"With the arbitration process now behind us, we look forward to moving ahead with our pending transaction with Nippon Steel," said David Burritt, CEO of U.S. Steel. However, the labor union expressed disagreement with the board's decision in a separate statement.

The planned takeover of U.S. Steel, the world's 24th-largest steel producer, by Nippon Steel, the fourth-largest, has become a contentious issue in the lead-up to the Nov. 5 U.S. presidential election. Both the company and the union are headquartered in Pennsylvania, a crucial swing state.

The deal has faced criticism from both major political parties, with current President Joe Biden and the Democratic presidential nominee, Vice President Kamala Harris, advocating for U.S. Steel to remain under American ownership. Former President Donald Trump, the Republican nominee, has also pledged to block the acquisition if elected.

AJP

Arbitration panel backs Nippon Steel's acquisition of U.S. Steel

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