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Nippon Steel (OTCPK:NISTF) came out late Thursday defending its proposed acquisition of US Steel (NYSE:X) after President Biden said the company should remain American owned and operated.
“Through increased financial investment and the contribution of our advanced technologies to US Steel, Nippon Steel will advance American priorities by driving greater quality and competitiveness for customers… while strengthening American supply chains and economic defenses against China,” the Japanese company said, according to Bloomberg.
US Steel (X) fell as much as 11% on Thursday before closing -6.3%, now trading sharply below Nippon’s (OTCPK:NISTF) offer of $55/share, showing that investors are increasingly concerned about the deal’s future.
Biden’s comments also have highlighted the influential position held by the United Steelworkers union and its leader, David McCall, whom the president called Thursday to reiterate that “he has the steelworkers’ back,” the White House said in a statement.
Nippon (OTCPK:NISTF) said it has “provided significant commitments to the USW… These include job security, pension security, capital investment, technology sharing, financial reporting, and the ability to enforce contractual obligations post-closing.”
Cleveland-Cliffs (CLF) CE Officer Lourenco Goncalves said he would consider making another bid – with union support – for US Steel (X), although at a significantly lower price than Nippon’s (OTCPK:NISTF) existing offer.