Latest news with #EijiHashimoto
Japan Times
11 hours ago
- Business
- Japan Times
Nippon Steel drops lawsuit against U.S. government after acquiring U.S. Steel
Nippon Steel is dropping a lawsuit against the United States government, chairman and CEO Eiji Hashimoto said as the company finalized its acquisition of United States Steel after an 18-month battle to complete the transaction. The suit has been rendered moot as a result of the successful purchase of the American steel-maker, Hashimoto said in reply to a question from The Japan Times after his meeting with trade minister Yoji Muto on Thursday evening. 'We were able to achieve our objective, so there is no longer a meaningful reason to continue that case — in a good sense,' he explained. A separate civil suit against a competitor and a union leader has not yet been dropped. Nippon Steel and U.S. Steel filed the lawsuit against the U.S. government in January to challenge former U.S. President Joe Biden's blocking of the transaction on national security grounds. They argued that the companies were denied due process and other rights, and claimed that the $14.9 billion transaction was blocked for political reasons. U.S. President Donald Trump, who had voiced opposition to the deal during his presidential campaign, reversed his predecessor's decision last week . He said the Japanese firm could buy the U.S. company if it signed a national security agreement with the U.S. government. Nippon Steel finalized the transaction on Wednesday. The civil suit alleges that United Steelworkers union President David McCall, Cleveland-Cliffs and Lourenco Goncalves, CEO of Cleveland-Cliffs, engaged in 'illegal and coordinated actions' to sabotage the U.S. Steel acquisition. Goncalves has dismissed Nippon Steel's claims, saying the accusations are "baseless." An outspoken critic of the Nippon Steel-U.S. Steel deal, Goncalves described Japan as 'evil' for 'teaching China how to dump steel.' In the lawsuit, he was accused of launching a 'public smear campaign' and 'trafficking in xenophobic stereotypes' about foreign investors to kill the deal. Cleveland-Cliffs made an unsolicited bid in July 2023 to purchase U.S. Steel for $35 a share — later raised to $54, according to reports — in cash and stock. Nippon Steel made an all-cash offer of $55 a share. McCall, who has been vocal in his opposition to the Nippon Steel transaction from the outset, said in a Wednesday statement that the union will 'continue watching' and hold Nippon Steel to its commitments. 'We will decide how to proceed after closely observing how the other parties respond, so no final decision has been made on that yet,' Hashimoto said of the civil lawsuit.
Yahoo
a day ago
- Business
- Yahoo
Nippon Steel completes US$15bn takeover of US Steel
Japan's Nippon Steel Corporation announced that it has finalised its US$ 15 billion takeover US Steel Corporation, to form a world-leading steelmaker with 'best-in-class technologies and manufacturing capabilities.' The deal came after the Japanese company agreed to grant the US government a "golden share", giving it a 'veto-like' power over the company's strategic decisions. This does not entitle the US government to any dividend payments, however, and will not require Washington to make investments in the company. Nippon Steel confirmed that the 'historic partnership' agreement allows US Steel to retain its 'iconic name' and its headquarters in Pittsburgh, Pennsylvania, while 'protecting and creating more than 100,000 jobs by unleashing unprecedented massive investments in US steelmaking, across US Steel's footprint.' Nippon Steel added that the two companies will 'move forward together as the best steelmaker with world-leading capabilities,' run from both Tokyo and Pittsburgh. The combined Nippon Steel Group will have an annual crude steel production capacity of around 86 million tons, bringing it closer to Nippon Steel's global strategic goal of 100 million tons. The company confirmed that it will make approximately US$ 11 billion in new investments in US Steel by 2028, including an initial investment in a greenfield project that will be completed after 2028. To protect US national security US Steel will continue to be run through its existing headquarters in Pittsburgh, with the majority of its board of directors and key management personnel, including its CEO, being US citizens. US Steel will maintain its capacity to produce and supply steel from its US production locations to meet market demand in the US. Nippon Steel has agreed it will not 'prevent, prohibit, or otherwise interfere with US Steel's ability to pursue trade action under US law.' Eiji Hashimoto, Nippon Steel's Representative Director, Chairman and CEO, said in a statement: 'I am very pleased that the partnership between Nippon Steel and US Steel has been realized thanks to President Trump's historic and visionary decision. Nippon Steel is excited about opening a new chapter of US Steel's storied history. Building on our investment, the transfer of our advanced technologies, and the unwavering efforts of management and the employees of both companies, Nippon Steel is committed, together with US Steel, to solidifying its position as the world's leading steelmaker.' US Steel's CEO, Dave Burritt, stated in his statement: 'This is a momentous day for our country, our communities, and the American steel industry. Thanks to President Trump's bold leadership, American workers secured the best possible deal. US Steel will remain rooted in the US and continue to call Pittsburgh its home. Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the US.' "Nippon Steel completes US$15bn takeover of US Steel" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
a day ago
- Business
- Yahoo
U.S. Steel Delists as Nippon Steel Completes $14.9 Billion Takeover
United States Steel (X, Financials) ceased trading on the New York Stock Exchange at 8:30 a.m. ET Wednesday after Japan's Nippon Steel completed its takeover, the NYSE said. The delisting will be finalized June 30. Warning! GuruFocus has detected 8 Warning Sign with X. President Donald Trump had publicly insisted the transaction would result in a partnership preserving American ownership, but filings confirmed U.S. Steel now operates as a Nippon Steel North America subsidiary. Former President Joe Biden blocked the deal in January on national security grounds; Trump later ordered a fresh review and ultimately cleared the merger under conditions. Under the national security agreement, the U.S. government holds a golden share that allows veto authority over headquarters relocations, plant closures, and certain foreign transactions. Nippon Steel also agreed to keep U.S. Steel's headquarters in Pittsburgh, maintain a U.S.-majority board, and invest $11 billion by 2028including $1 billion in a new greenfield project post-2028. Nippon Steel CEO Eiji Hashimoto said the golden share will not impede management decisions, and emphasized the investment will modernize U.S. Steel's aging facilities. The acquisition positions Nippon Steel to boost annual U.S. crude steel output toward its 100 million-ton goal, leveraging strong domestic infrastructure demand without tariff barriers. U.S. Steel will continue to operate under its historic name, with a U.S. citizen majority on its board and American leadership at the CEO level, as stipulated by the takeover agreement. This article first appeared on GuruFocus.
Khaleej Times
a day ago
- Business
- Khaleej Times
Nippon Steel closes US Steel acquisition under strict conditions
Nippon Steel completed its multi-billion-dollar acquisition of US Steel on Wednesday, granting rare veto-like power over strategic decisions to Washington with a "golden share". The announcement concludes a saga that began in December 2023, when Nippon Steel agreed to acquire the linchpin of American steelmaking for $14.9 billion. An outright buyout sparked bipartisan political opposition, including from US President Donald Trump, who railed against the proposed deal throughout the 2024 presidential campaign. But last month he announced a pivot, branding the revamped venture -- blocked by former president Joe Biden on security grounds -- as a "partnership" rather than a takeover. A national security agreement between the companies and the US government provides that approximately $11 billion in new investments will be made by 2028. And Washington's non-economic golden share allows it to appoint one independent director as well as granting consent rights for proposed capital budget cuts among other powers. Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this "won't hinder activities that we hope to conduct." "The agreement is fully satisfactory to us, as it ensures the management freedom... essential for business investment," Hashimoto told reporters. "We intend to start implementing measures for revitalisation and development as soon as possible," he said, promising not to "transfer jobs and production sites elsewhere." It is "only natural" that the US government would be concerned about the takeover of a symbolic company, which dates back to 1901, Hashimoto added. 'Massive victory' A source close to the matter said Nippon Steel had bought all common shares of US Steel, completing the merger. The deal creates the world's fourth biggest steelmaker -- but Nippon Steel faces several big challenges, from trade tariffs to weak demand for steel products worldwide. Nippon Steel shares were up 2.4 percent Thursday afternoon, even as Tokyo's benchmark Nikkei index slumped 0.9 percent. Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome "a massive victory for working families in the Mon Valley, our economy, our national security, and America's manufacturing future!" But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to "continue watching, holding Nippon to its commitments," according to a statement. "We will use the most powerful tool workers have against global corporations: collective bargaining." Biden had blocked the transaction in early January, shortly before leaving office. He said that placing "one of America's largest steel producers under foreign control" could "create risk for our national security and our critical supply chains." Government influence Besides agreeing to keep US Steel's Pittsburgh headquarters and to maintain US production, the national security agreement calls for a majority of US Steel's board to be US citizens, as are key leaders including the CEO. The "golden share" does not entitle the US government to dividends, nor does it require Washington to make investments in the company. While the structure gives the government "extraordinary" influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, said Atlantic Council senior fellow Sarah Bauerle Danzman. Nippon Steel's promise of investment means more steel will be produced in the United States, leading to a likely drop in steel prices, said Gordon Johnson, CEO of GLJ Research. "US Steel was talking about closing significant capacity in Pennsylvania, which would have devastated a big swathe of that economy. So this is definitely a win for the US worker, it's definitely a win for the US economy," he told AFP.
France 24
a day ago
- Business
- France 24
Nippon Steel closes US Steel acquisition, grants 'golden share' to US government
05:46 From the show After 18 months of negotiations, Japan's top steelmaker, Nippon Steel, completed its $14.9 billion acquisition of US Steel. On Thursday, CEO Eiji Hashimoto confirmed that the company granted the US government an unusual "golden share", giving it more say in strategic issues. Also in this edition, the latest data showing France's economy is lagging behind its European neighbours and potentially the biggest sale in US sports team history.
