In a recent report on Reuters, they stated that Nippon Steel, Japan hopes to close a deal of $15 billion deal to buy US Steel before the Republican Leader Donald Trump Takes over the White House again in January.
A senior executive explains that the acquisition is a core for future growth. However, as per records, they agreed to buy US Steel in December, but there was opposition from a powerful labor union as well as from Trump, President Joe Biden, and many other individuals, with Mr. Trump claiming to block the deal if re-elected.
Takahiro Mori, Nippon Steel’s vice chairman and a key negotiator on the deal, said, “We believe we can close the US Steel deal by the end of the year under the current U.S. administration,” told reporters on Thursday as per Reuters.
The Committee on Foreign Investment in the United States (CFIUS) has decided to review the $15 billion deal until the end of December, now that the elections are over, they believe that there is no further reasons to delay it.
Mori said on Thursday that CFIUS’ and antitrust authorities’ reviews were moving forth ‘solemnly’.
U.S. Steel and Nippon Steel are aiming to raise their global steel production capacity to 85 million metric tons per year from 65 million tons now, and the asset is the crux of its goal, of having over 100 million tons of production capacity in the future.
On Thursday, Nippon Steel adjusted its full-year net profit forecast to ¥310 billion ($2 billion), down from its earlier projection of ¥340 billion, citing inventory losses due to weak raw material prices and slow-moving domestic demand.
Despite the revision predicted by Nippon Steel for the fiscal year ending in March, they remain committed to its full-year dividend target of ¥160 per share, as per the reports in Japan Times.
For the six months ending September 30, Nippon Steel reported a 19% decline in net profit year-on-year, totaling to an account of ¥243.4 billion.