Nippon Steel postpones U.S. Steel buyout to after presidential race

TOKYO (Kyodo) -- Nippon Steel Corp. said Friday it will postpone arrangements to complete its acquisition of United States Steel Corp. by three months through December, with the deal having become a hot-button topic in the leadup to November's presidential election.

Donald Trump, the presumptive Republican presidential candidate, has said he would block the $14.1 billion buyout of the American company while President Joe Biden has also expressed support for unionized workers who oppose the Japanese steelmaker's takeover.

Nippon Steel said its latest decision came after considering the possible timing of U.S. regulatory approval while denying the political situation was the catalyst.

The planned acquisition will enable U.S. Steel to produce more advanced and environmentally sustainable steel for U.S. customers and "strengthen the resilience of American industry against threats from China", the two companies have said.

They have also said the U.S. firm's headquarters will stay in Pittsburgh, its name will be unchanged, and production and jobs will remain in the United States after the acquisition.

Shareholders of U.S. Steel have approved the deal.

The acquisition plan also needs to be approved by the Committee on Foreign Investment in the United States, which assesses whether certain deals pose a national security threat.