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Nearly 100% confident of closing U.S. Steel deal by

year-end

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All possible measures on table if U.S. approval denied

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President-elect Trump opposes $15 bln purchase

By Yuka Obayashi, Katya Golubkova and Ritsuko Shimizu

TOKYO, Dec 5 (Reuters) -

Japan's Nippon Steel ( NISTF ) is committed to its $15

billion acquisition of U.S. Steel and is confident of

completing it by year-end, a senior executive said, despite

strong U.S. opposition including from President-elect Donald

Trump.

"We will not give up on the deal... There is no global

strategy without the U.S.," Nippon Steel ( NISTF ) Vice Chairman Takahiro

Mori told Reuters this week, after returning from his eighth

visit to the United States since the deal was announced a year

ago.

With U.S. Steel, Nippon Steel ( NISTF ) aims to raise its global steel

production capacity to 85 million metric tons per year from 65

million tons now and the asset is core to its goal of lifting

production capacity to more than 100 million tons in the

long-term.

The transaction has faced stiff resistance from politicians

and the United Steelworkers (USW), a major labour group. Trump

reiterated his opposition to the deal this week.

Asked whether U.S. Steel's CEO David Burritt would remain in

place, Mori said Nippon Steel ( NISTF ) would select the right person as

CEO from various candidates, including Burritt, but no decisions

had been made.

Mori, who has been leading the talks, held discussions with

politicians and local stakeholders in Pittsburgh, where U.S.

Steel has its headquarters, during his latest U.S. trip, but did

not meet members of the incoming Trump administration.

He declined to comment on whether he had met USW President

David McCall during the visit.

"We sensed growing support from the local community," Mori

said, noting that discussions had shifted to more substantive

issues, such as the project's intrinsic value, since the

conclusion of the U.S. presidential election.

"We are close to 100% confident of closing the deal by

the end of the year," he said.

Nippon Steel ( NISTF ), the world's No.4 steelmaker, has obtained all

necessary regulatory approvals outside the U.S., and is awaiting

reviews from the Committee on Foreign Investment in the United

States (CFIUS) and clearance from the U.S. Department of Justice

(DOJ) under antitrust laws.

The Japanese steelmaker has promised not to transfer any

U.S. Steel production capacity or jobs outside the United

States. It has also said it would not interfere in any of U.S.

Steel's decisions on trade matters, including decisions to

pursue trade measures under U.S. law against unfair trade

practices.

Trump returns to the White House on Jan. 20, though

President Joe Biden has also said U.S. Steel should remain an

American-owned company.

FINANCING OPTIONS

The CFIUS is due to deliver its decision this month. The

committee could approve the deal - potentially with provisions

to address national security concerns - or recommend that the

president blocks it. It can also extend the review period.

If approval from U.S. authorities is not granted, the

Japanese company is open to pursuing all possible measures,

including legal action, to secure the deal, Mori said.

To finance the acquisition, Nippon Steel ( NISTF ) has already raised

some funds via hybrid financing and sold some assets, part of an

effort to strengthen its financial position.

"We have a number of options for permanent financing,

including capital increase. We will select the most appropriate

financial tools," Mori said.

In case the company decides to pursue a secondary share

issue, it will not make a significant dilution for the current

shareholders, he added.

The deal is being closely watched in Japan, a close U.S.

ally and its biggest foreign investor. Last month, Japanese

Prime Minister Shigeru Ishiba sent a letter to Biden, urging him

to approve the acquisition.

Mori said the company did not request the letter but

acknowledged its significance.

"It's important to note that the Japanese government is

strongly supporting this deal and closely monitoring the proper

procedures. I am very grateful for that."