Nippon Steel clarified its spending plans at U.S. mills owned by United States Steel as part of last-ditch efforts to win over workers and politicians for its bid to buy the Pittsburgh-based steelmaker.
After meeting with United Steelworkers leaders, the Japanese firm released a letter to U.S. Steel staff on Monday. In it, Nippon Steel said it made new commitments with regards to where and when a previously announced $1.4 billion capital expenditure commitment would be spent. The figure doesn’t include maintenance or depreciation, Nippon Steel said.
The latest letter indicates there had been at least some interaction between the parties in recent weeks, with Nippon Steel saying the USW asked for further details about its capital expenditure plans. It’s unclear that this letter will change USW leadership’s long-held official stance of opposing the deal, but it does suggest the Japanese buyer is racing to do anything possible to get approval from the influential union before a federal review is concluded on whether to approve the $14.1 billion takeover.
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