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Nippon Steel shares the view of Washington that the U.S. Steel Deal will boost U.S. Industry

Nippon Steel shares the view of Washington that the U.S. Steel Deal will boost U.S. Industry

Nippon Steel President said Monday that Nippon Steel and the U.S. Government share an understanding that their planned acquisition of U.S. Steel would strengthen the American manufacturing and steel industries.

Tadashi Imai, President of Nippon Steel, told reporters that "in my opinion, we and the U.S. Government are moving closer towards a mutual understanding" about how our acquisition will strengthen the U.S. Steel industry and manufacturing by investing, including through equity participation.

He declined to give any more details. However, he did say that Japan's largest steelmaker, U.S. Steel, will continue to negotiate with the U.S. Government to reach an accord on the terms of equity purchase and future investments plans.

A filing last week showed that the administration of U.S. president Donald Trump had filed a motion for an extension of two deadlines to U.S. Steel's and Nippon Steel’s lawsuit against a U.S. National Security Panel to give the government time to conclude merger talks with these firms.

The filing is the most clear indication that Trump could allow the deal to go forward in some form, after it was scuttled under his predecessor Joe Biden.

In February, Trump said in the Oval Office alongside Japanese Prime Minister Shigeru ishiba that Nippon Steel’s $14.9 billion offer for U.S. Steel was an investment and not a purchase.

Trump said that in mid-February he wouldn't mind if Nippon Steel acquired a minority stake of U.S. Steel.

Imai said, however, that late last month, the Japanese company's merger agreement with U.S. Steel would serve as the starting point for discussion with the U.S. Government, including the Department of Commerce. (Reporting and editing by Himani Sarkar, Saad Sayeed and Kantaro Kommiya)

(source: Reuters)