However, this agreement has been criticized by some US lawmakers and the United Steelworkers Union. At a press conference last month, Deputy General Manager Takahiro Mori stated that Nippon Steel is expediting discussions with various stakeholders to complete the deal as planned.
Both companies are seeking to obtain the necessary regulatory approvals in the United States and other jurisdictions. Among the terms of the agreement is that one party must pay a $565 million penalty to the other if it terminates the agreement.
Nippon Steel aims to gain approval from USW, US Steel's main union, stressing that the agreement will strengthen the US company's profitability and financial position. However, it was stated that the company's net profit in the April-December period decreased by 14.7 percent to 440.9 billion yen ($2.98 billion) and reduced its annual profit forecast.
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