Nippon Steel Targets Acquisition of U.S. Steel Amid Political Concerns

Japan's Nippon Steel aims to acquire U.S. Steel, ensuring core senior management and most board members would be U.S. citizens. Democratic presidential candidate Kamala Harris and President Joe Biden expressed concerns over the $15 billion deal. Nippon Steel has hired Mike Pompeo as an advisor and pledged $1.3 billion in investments.

Japan's biggest steelmaker, Nippon Steel, has announced plans to ensure core senior management and the majority of board members at U.S. Steel would be U.S. citizens if its acquisition goes through.

The announcement comes after Democratic presidential candidate Kamala Harris voiced concerns, echoing President Joe Biden's stance, that U.S. Steel should remain American-owned and operated. Nippon Steel confirmed that U.S. citizens would make up the majority of the board of directors and include three independent directors who would also be U.S. citizens.

To secure political and labor union support, Nippon Steel has retained former U.S. Secretary of State Mike Pompeo as an advisor and plans to invest an additional $1.3 billion in U.S. Steel's mills. Vice Chairman Takahiro Mori is expected to visit the United States this month for deal-related discussions. The companies aim to finalize the deal by the end of the year, pending regulatory approvals.

(With inputs from agencies.)