Nippon Steel said the core senior management as well as the majority board members of U.S. Steel would be U.S. citizens if the sale of the Pittsburgh, PA-based firm to the Japanese steel major were to occur.
Tokyo-based Nippon Steel also noted that the U. S. Steel's Board of Directors will include three independent directors who are U.S. citizens.
"Nippon Steel continues to believe that the Transaction [U.S. Steel acquisition by Nippon Steel] will enhance American national security by reinforcing U.S. Steel and its domestic production capabilities, bringing cutting-edge technologies into the United States, and ultimately making the American industrial base and supply-chain more resilient and better positioned to compete against future pressures from state-supported Chinese competitors," the company said in a statement.
The statement from the company came after concerns expressed by both President Joe Biden and Vice President Kamala Harris on the planned $15 billion deal. The two highest officials of the U.S. said that they wanted U.S. Steel to remain in the hands of Americans.
"U.S. Steel should remain American-owned and American-operated, and I will always have the backs of America's steelworkers," said Harris during a joint campaign appearance with Biden in Pennsylvania, Forbes reported.
In April, Biden opposed the sale of U.S. Steel to Japanese firm and that it is "vital" for U.S. Steel "to remain an American steel company that is domestically owned and operated."
In case of sale closure, Nippon Steel North America (NSNA), a New York-based subsidiary of Nippon Steel and has been in operations in the U.S. for more than half a century, would be the new owner of U.S. Steel.
Nippon Steel emphasized that it would prioritize production at U. S. Steel to meet the demand in the U.S. steel market and assured there will be no interference by Nippon Steel/NSNA with U. S. Steel's decisions on trade matters and its determination to pursue trade measures under U.S. law.
U.S. Steel will maintain an internal officer-level "trade committee" comprised of U.S. citizens, which will make recommendations to the U.S. Steel Board on trade matters and trade decisions should need approval by a majority of the independent, U.S. citizen members of the Board of Directors.
The Japanese firm also made the effort to hire former U.S. Secretary of State Mike Pompeo as adviser to help gain the support of labor unions and politicians. Just last week, the company revealed its plan to make an additional investment of $1.3 billion in the mills of U.S. Steel.
Nippon Steel also revealed plans to visit the U.S. anytime this month so that its Vice Chairman Takahiro Mori may continue negotiations. However, specific dates and names of people who would be in a meeting with Mori were not disclosed.
