Almost a year after Nippon Steel announced its takeover plan, hefty political hurdles remain. US President-elect Donald Trump this week repeated his opposition to the sale of US Steel, saying he would instead use tariffs and tax incentives to revitalise the American steelmaker.
Other lawmakers and union leadership are also against the transaction, but some union members, business groups and political figures have expressed support for a deal, saying it will benefit the local economy and jobs.
Mori said he was met with positive feedback from the local community during his visit last month to the US, declining to elaborate on the details of meetings held with stakeholders, citing confidentiality.
“There was more momentum among local communities for the deal versus when we first started the talks,” he said in an interview on Tuesday.
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The deal is currently under review by the Committee on Foreign Investment in the United States, known as Cfius, a secretive panel that scrutinises proposals by foreign entities to purchase companies or properties in the US.
The panel granted an extension to the review, which effectively pushed the decision on the acquisition to after the November presidential election. The takeover must go to President Biden this month unless another delay is approved.
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Separately, Mori said Japan needs to take tougher measures, such as tariffs, on the export of excess steel supply from China. A Japanese trade ministry official said in September that it’s in the process of broadening the scope of anti-dumping duties to cover Chinese steel among other products.
Photo: Bloomberg
