(Reuters) – On Wednesday, U.S. Steel announced that an arbitration board ruled in favor of Nippon Steel’s $14.9 billion acquisition of the company, although the United Steelworkers (USW) union expressed disagreement with the decision.
The arbitration board, which was jointly chosen by U.S. Steel and the union to resolve disputes, determined that U.S. Steel had met all conditions of the successorship clause in its basic labor agreement with the USW.
“The arbitrators accepted Nippon Steel’s assertion that it would adhere to the Basic Labor Agreement,” the USW stated. The union further emphasized that this ruling did not alter its opposition to the acquisition.
In response, Nippon Steel reiterated its commitment to developing a constructive relationship with the USW, noting that their commitments extend well beyond the current requirements of the existing Basic Labor Agreement.
Since its inception last December, the deal has encountered political resistance. Both Democratic presidential candidate Kamala Harris and Republican challenger Donald Trump have advocated for keeping U.S. Steel under American ownership.
Nippon Steel offered a significant premium to secure the deal, anticipating potential benefits from U.S. President Joe Biden’s infrastructure spending initiatives.
Earlier in the month, U.S. Steel cautioned that the failure to finalize the deal might jeopardize thousands of U.S. union jobs. The company also indicated possible closures of some steel mills and the potential relocation of its headquarters from Pennsylvania, a state with considerable political significance.
In Tokyo, on Thursday, Nippon Steel President Tadashi Imai informed reporters that the U.S. Committee on Foreign Investment had extended its review of the deal until the end of December, which is after the November 5 presidential elections. Imai noted that while the extension did not warrant excessive optimism, the company remained focused on dialogue with the USW and aimed to finalize the deal by the end of December.
