(Bloomberg) – Nippon Steel Corp. has clarified its spending plans at U.S. plants owned by United States Steel Corp. as part of a last-ditch effort to win over workers and politicians to his bid to buy the Pittsburgh-based steelmaker.
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After meeting with United Steelworkers leaders, the Japanese company released a letter to US Steel employees on Monday. In it, the Japanese company said it has made new commitments regarding where and when a previously announced $1.4 billion would be spent. The figure does not include maintenance or depreciation, Nippon said.
The latest letter indicates that there has been at least some interaction between the parties in recent weeks, with Nippon Steel saying the USW has asked for more details about its investment plans. It is unclear that this letter will change the USW leadership’s long-held official position opposing the deal, but it does suggest that the Japanese buyer is making every effort to gain approval from the influential union before any federal review is being completed on whether to approve the deal. $14.1 billion acquisition.
“During our recent conversations with USW leadership, we listened carefully to USW’s requests for further details on our future plans,” Nippon Steel said, adding that following these conversations, it will send an additional commitment letter to USW president on December 2 David McCall sent. “Resolving all concerns raised.”
The Japanese steelmaker said it released the letter after a “constructive dialogue” with Pennsylvania Governor Josh Shapiro and others, signaling that the Democratic governor – who has not taken a public position on takeover – is involved in ongoing talks. The collapse of the deal would raise new questions about the future of steel production in Pennsylvania, where political outrage is concentrated.
“While the final decision on this proposed deal will ultimately be made solely by the White House, the Governor will remain actively involved in this process,” a spokesperson for Shapiro’s office said in a message to Bloomberg on Monday.
Nippon Steel’s letter also makes the previously announced $1.3 billion in additional capital expenditures legally binding. That money was promised after an arbitration meeting. Nippon Steel is seeking to address concerns about job security at factories using traditional blast furnace production from iron ore as part of the pending transaction.
