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U.S. Steel says arbitration board rules in favor of Nippon Steel's $14.9 bln buyout
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U.S. Steel says arbitration board rules in favor of Nippon Steel's $14.9 bln buyout
Oct 3, 2024 1:28 AM

Sept 25 (Reuters) - U.S. Steel said on Wednesday

the board of arbitration has ruled in favor of Nippon Steel's ( NISTF )

$14.9 billion buyout of the company, but the United

Steelworkers union disagreed with the decision.

The board, jointly selected by the company and the union to

settle disputes, ruled that U.S. Steel had satisfied each of the

conditions of the successorship clause of its basic labor

agreement with the USW.

"The arbitrators accepted at face-value Nippon Steel's ( NISTF )

statement that it would assume the Basic Labor Agreement," USW

said.

The union said the decision did not change its opposition to

the deal.

Japan-based Nippon Steel ( NISTF ) did not immediately respond to a

request for comment.

The deal has faced political opposition since it was signed

last December. Democratic presidential candidate Kamala Harris

and her Republican challenger Donald Trump have supported U.S.

Steel remaining American owned.

Nippon Steel ( NISTF ) had paid a hefty premium to clinch the deal for

U.S. Steel on bets it could benefit from U.S. President Joe

Biden's infrastructure spending bill.

Earlier this month, U.S. Steel warned that a failure to

conclude the deal would put thousands of U.S. union jobs at risk

and signaled that it would close some steel mills and

potentially move its headquarters out of the politically

important state of Pennsylvania.

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