The announcement of U.S. Steel’s agreement to be acquired by Japanese steelmaker Nippon for nearly $15 billion sent shock waves through the region and country. In Japan, media covered the proposed deal by reporting on the anticipated benefits for Nippon, while observing that resistance to the deal could scuttle it before anything is finalized.
Kyodo News in Tokyo brought up concerns around America’s “strict antitrust laws” and observed that Nippon will have to overcome hurdles during the acquisition process.
“It is unclear whether American regulatory authorities will readily approve a Japanese steel company’s acquisition of a leading American steel company,” Kyoto News wrote in one report. “American steel unions are already starting to make noise. In the past, there was an uproar when a Japanese company acquired New York’s Rockefeller Center, a symbolic American building, during the bubble economy.”
Media also focused on Nippon Steel president Eiji Hashimoto, who met with local media Tuesday. Hashimoto told reporters the deal will lead to economic growth.
“The United States has without doubt taken the worldwide lead in securing its economic security,” Hashimoto said during the online news conference. “We can expect further growth in the U.S. market as more manufacturers engage in the reshoring of production.”
The deal for the Pittsburgh steelmaker comes with an agreement for an all-cash transaction of $55 per share, representing an equity value of approximately $14.1 billion plus the assumption of debt, for a total value of $14.9 billion. The transaction was unanimously approved by the boards at NSC and U.S. Steel, officials said.
During his news conference, Hashimoto defended the offer — nearly double what steelmaker Cleveland-Cliffs offered in August — and promoted the anticipated benefits for the company as it fights to keep up with Asian and global competitors.
“We want to complete a global network for a new era in the industry,” he said. “We believe that there is sufficient economic rationale.”
Funding for the acquisition came from “proceeds mainly from borrowings from main Japanese banks and has already secured financing commitments,” the company said in a statement Monday.
