Nippon Steel says buyout ensures US Steel to remain American icon

TOKYO (Kyodo) -- Nippon Steel Corp. and United States Steel Corp. stressed on Thursday that the U.S. steelmaker will remain "an iconic American company for generations to come" even after the planned acquisition by the Japanese firm.

The joint statement came after U.S. President Joe Biden vowed Wednesday that U.S. Steel will remain "totally American" in his latest show of support for unionized workers who oppose the deal.

The announcement comes as the deal has become a point of dispute in November's presidential election. Winning support from union voters in Pennsylvania, where U.S. Steel is headquartered, is becoming increasingly important for Biden in his attempt to defeat his predecessor Donald Trump, who has said he would "block" the deal.

The two steelmakers 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 even after the $14.1 billion deal.

The partnership with Nippon Steel 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," they said.

Last week, shareholders of U.S. Steel overwhelmingly approved the deal, first announced in December.

For the acquisition to materialize, the plan also needs to be approved by the Committee on Foreign Investment in the United States, which studies whether foreign investments pose a national security threat.