American steelworkers speak to FOX Business Lydia Hu outside of Pittsburgh, where the U.S. Steel headquarters may soon be handed over to Japan-based Nippon.
An arbitration board on Wednesday ruled that Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel has complied with the requirements of the firm's labor agreement with the United Steelworkers (USW) union, removing a potential hurdle to the deal ultimately proceeding.
The arbitration board, which was selected by U.S. Steel and the union to settle disputes, found that the company met its obligations under the successorship provisions of its labor contract with the USW, despite the union's objections.
U.S. Steel said that arbitrators determined that Nippon Steel has recognized the USW as the bargaining representative for its employees at the company, made reasonable assurances that it is willing and financially able to honor U.S. Steel's commitments to the USW, and assumed all of U.S. Steel's agreements with USW-represented employees.
The decision eliminates a potential barrier to U.S. Steel's acquisition by Nippon Steel, though the deal is still undergoing a regulatory review by the Committee on Foreign Investment in the U.S. (CFIUS), which is looking into national security concerns related to the transaction.
US STEEL CEO SAYS COMPANY LIKELY TO CLOSE STEEL MILLS IF PROPOSED $14B SALE TO NIPPON STEEL FALLS THROUGH
U.S. Steel has warned it may be forced to close steel plants if its deal with Nippon Steel falls through, given Nippon's pledge to invest in the Mon Valley Works and Gary Works. (Justin Merriman/Bloomberg via Getty Images / Getty Images)
«With the arbitration process now behind us, we look forward to moving ahead with our pending transaction
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