Nippon Steel's Strategic Moves in the Face of U.S. Steel Acquisition

Nippon Steel plans to sell its 50% stake in a joint-venture steel plant in Alabama to address antitrust concerns. This move is strategic for the Japanese firm as it seeks to acquire United States Steel. Political and regulatory hurdles present challenges, with CFIUS reviewing the deal's implications.

Nippon Steel announced plans to sell its entire 50% stake in a joint-venture steel plant in Calvert, Alabama, if it secures a successful buyout of United States Steel. This decision aims to clear any potential antitrust hurdles that might arise from the deal.

The acquisition of U.S. Steel has faced significant political opposition, with both Kamala Harris and Donald Trump advocating for U.S. Steel to remain American-owned. The Committee on Foreign Investment in the United States (CFIUS) extended its review period of the deal until the end of December.

Shigekazu Iwamoto, a Nippon Steel executive, stated the share sale is crucial for timely regulatory approval of the acquisition. Despite a potential loss on selling the stake in Calvert, Nippon Steel prioritizes the larger-scale U.S. Steel to boost its North American presence, while continuing its partnership with ArcelorMittal in India.

(With inputs from agencies.)