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Nippon Steel emphasises its 'deep roots' in the US as it pursues U.S. Steel offer

Nippon Steel means to pursue its proposed acquisition of U.S. Steel and desires its deep roots in the United States to be identified, its brand-new president said remarks that come after U.S. President Joe Biden revealed opposition to the deal.

The Japanese company has consented to buy U.S. Steel for approximately $ 15 billion but the offer faces an uphill battle to approval in a. U.S. election year.

The White House sees steel as critical to national security. and Biden said last month that U.S. Steel ought to remain. domestically owned. His challenger in the November presidential. vote, former President Donald Trump, has guaranteed to block the. offer if he is re-elected.

It's unclear if Biden prepares to use any U.S regulatory. authorities to scuttle the offer.

What U.S. politicians are worried about is tasks and. whether U.S. Steel can develop as an iconic U.S. company in the. U.S., Tadashi Imai informed press reporters recently before he took on. his brand-new function on Monday.

I am convinced that we're the most helpful partner to assist. U.S. Steel grow in the United States, he added.

Imai, 60, ended up being president in a management reshuffle. planned to reduce the average age of top executives however in a. break with tradition, its charismatic previous president Eiji. Hashimoto has actually handled the title of chief executive and will be. in charge of shepherding the acquisition.

The proposed deal has drawn strong criticism from some. lawmakers and the United Steelworkers (USW) labor union which is. worried about possible task losses.

Japan's largest steelmaker has vowed no job cuts as a. result of the offer, to honour all agreements between the union. and U.S. Steel in addition to move its own U.S. head office to. Pittsburgh where U.S. Steel is based.

Imai said he was enthusiastic that Nippon Steel would become. seen as a firm with deep roots in the U.S., keeping in mind that it has. had an existence there since the 1980s and has 4,000 employees in. the country, a few of whom are likewise members of the USW.

The most essential thing and the only thing that we can do. is to speak to the USW in excellent faith, about financial investment strategies and. measures to raise the competitiveness of U.S. Steel, he stated.

Imai stated that the acquisition would offer U.S. Steel access. to Nippon Steel's innovative technologies such as electro-magnetic. steel sheet, adding that the Japanese company has some 2,000 steel. patents in The United States and Canada while U.S. steelmakers in general had. roughly 200 each.

At home, Imai's primary focus will be decarbonisation, he said,. including that the company will quickly need to make financial investment. decisions on whether to buy new electrical furnaces at 2. sites - the Kyushu Works Yawata website in southern Japan and. Setouchi Functions Hirohata site in western Japan.

The company must choose the projects either this. fiscal year or the next one, Imai stated.

It will be a big investment ... but the time for a secret. choice is approaching on the technical certainty and. predictability of the return on investment..

(source: Reuters)