Nippon Steel exec to meet USW head to seek support for U.S. Steel deal
By Yuka Obayashi and Ritsuko Shimizu
TOKYO (Reuters) — A senior Nippon Steel executive told Reuters he is set to meet the United Steelworkers (USW) union chief this month to seek support for acquiring U.S. Steel, expressing confidence the deal can be finalised by the end of September.
Gaining their backing could help the world's fourth-largest steelmaker carry the $14.9 billion purchase of its U.S. rival over the line. The merger has drawn criticism from some Democratic and Republican lawmakers who worry about the national security implications of the takeover, even though the U.S. and Japan are close allies, and the powerful USW, who worry how their workers could fare under Nippon Steel's management.
«I think we've cleared the contractual issues,» Executive Vice President Takahiro Mori said in an interview on Feb. 28, emphasizing Nippon Steel's plan to uphold all of the current agreements between the union and U.S. Steel.
Mori will meet the USW chief in early March after a non-disclosure agreement it signed with the union on Feb. 26, which he sees as a positive indicator since it signalled their willingness to talk.
«We will have heart-to-heart talks» to address concerns including jobs and mills, he said.
Nippon Steel thinks it can strengthen U.S. Steel's business without job cuts or plant closures through providing its advanced technologies, including those for high-grade electromagnetic steel sheets that are used in electric vehicles.
«The products could be a game changer in the U.S.,» Mori said, adding other skills in blast furnace operation and decarbonisation will also help grow the U.S. company.
Nippon Steel aims to find common ground with the USW by early April when U.S. Steel is expected to hold a shareholder
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