Latest news with #TakahiroMori
Yomiuri Shimbun
3 days ago
- Business
- Yomiuri Shimbun
Rump Reiterates U.S. Steel To ‘Remain American Company'; Pledges No Layoffs, Furnaces at Full Capacity for 10 Years
Hiroyuki Tanaka / The Yomiuri Shimbun Nippon Steel Corp. Vice Chairman Takahiro Mori, right, delivers a speech beside U.S. Steel CEO David Burritt, left, at a rally in West Mifflin, Penn., on Friday. WEST MIFFLIN, Penn. — U.S. President Donald Trump reiterated that he welcomed Nippon Steel Corp. only as a partner for U.S. Steel Corp., at a rally held Friday in West Mifflin, Penn. Trump appears to believe that he can tout huge investments in and the preservation of jobs at U.S. Steel as his achievements, while the U.S. government maintains influence over the steelmaker's management on the grounds that it is necessary for national security. In his address Friday, Trump said that Pittsburgh, where U.S. Steel's head office is located, 'will be respected around the world as the steel city again.' As in earlier remarks, Trump did not use the word 'purchase,' presumably because he did not want to damage his trademark image of 'America first.' Trump told the audience, 'You're going to stay an American company' and that U.S. Steel would continue to be 'controlled by the USA,' appealing to employees of U.S. Steel attending the rally. The president also showed a conciliatory attitude toward Nippon Steel. He mentioned company Vice Chairman Takahiro Mori, who spoke before Trump at the rally, saying that the purchase plan is a business deal that Mori had considered for many years. 'Thank you, Takahiro,' Trump said at one point. Trump did not mention any details about Nippon Steel's acquisition plan, but he repeatedly referred to the practical management of U.S. Steel. He said, for example, that U.S. Steel's blast furnaces will continue to be operated at full capacity for the coming 10 years and employees will not be laid off. These remarks were apparently meant to show consideration for U.S. Steel employees and voters in Pennsylvania, as Trump had been negative in the past about Nippon Steel's plan to purchase U.S. Steel. Trump revealed that Nippon Steel will invest $14 billion to improve blast furnaces and other facilities. An executive of Nippon Steel praised Trump's stance after listening to his address. 'He also spoke about investments after the purchase and the provision of bonuses. We clearly saw progress in his remarks in this speech,' the executive said. Hiroyuki Tanaka / The Yomiuri Shimbun Nippon Steel Corp. Vice Chairman Takahiro Mori, right, delivers a speech beside U.S. Steel CEO David Burritt, left, at a rally in West Mifflin, Penn., on Friday. SNS: U.S. President Donald Trump reiterated that Nippon Steel Corp. is only a partner for U.S. Steel Corp., at a rally held Friday in Pennsylvania
Yahoo
6 days ago
- Business
- Yahoo
Markets ask how soon Nippon Steel will benefit from $15 billion bid for U.S. Steel
(Corrects paragraph 9 description to "lower", not "outperforming") By Katya Golubkova and Anton Bridge TOKYO (Reuters) -Nippon Steel investors and analysts are asking if its $15-billion deal to buy U.S. Steel, backed but not yet approved by President Donald Trump, is positive for the near term, even if its hopes for strong U.S. demand materialise. Such a merger would create the world's third-largest steel producer by volume, after China's Baowu Steel Group and Luxembourg-based ArcelorMittal, data from the World Steel Association (WorldSteel) shows. The "planned partnership" would create at least 70,000 jobs and add $14 billion to the U.S. economy via Nippon Steel's additional investments, Trump said last week. While full details of the deal remain unclear, U.S. Steel shares surged 21% on the news and Nippon Steel gained 7%. Nippon Steel did not exclude issuing new shares to fund the takeover, Vice Chairman Takahiro Mori said in December, after having already raised some funds through hybrid financing and asset sales. "If the new equity is issued, investors will rightly be asking: is this the best possible use of capital at this moment?" said Fiona Deutsch, lead analyst with Australasian Centre for Corporate Responsibility (ACCR). The company had pledged an investment of up to $4 billion in a new coal-dependent blast furnace, said Deutsch, whose climate activist group holds less than 1% of Nippon Steel's shares. That plan, part of a wider investment commitment of $14 billion, comes "at a time when the global steel sector is shifting towards low-carbon alternatives", she added. Nippon Steel shares were up 1% by 0405 GMT, lower than the overall Nikkei index, which was up 1.6%. Unveiling the deal in late 2023, Nippon Steel offered $55 for each share of U.S. Steel, for a premium of 40% at the time. U.S. Steel shares closed at $53.3 on Wednesday. "There's a lot of immediate negative effects, even though the long-term effect may be positive," said an adviser to institutional investors on strategies for Nippon Steel. He cited the dilution as a further deterrent, besides the high offer price and additional investment commitments. Nippon Steel did not reply to a Reuters request for a comment. "In the short term, there are concerns about financing," said Shinichiro Ozaki, a senior analyst at Daiwa Securities. "Given that U.S. Steel reported a net loss for the January-March period, the stock market may worry about the limited likelihood of a short-term return on the investment." STRATEGIC GOALS Projections that domestic demand will stay weak have pushed Nippon Steel, which is Japan's largest steelmaker, and others to look to overseas expansion, while they consider shutting some blast furnaces at home. U.S. Steel is key to Nippon Steel's goal to raise its global output capacity to more than 100 million metric tons a year from 63 million tons now, as it aims to benefit from demand in India and the United States. Both markets are relatively protected from vast steel exports from China, the world's top producer, thanks to protectionist measures they have adopted, such as tariffs. In March, Nippon Steel President Tadashi Imai, who also chairs the Japan Iron and Steel Federation, warned that U.S. auto and steel tariffs could cut several million tons from Japan's annual steel output to below 80 million tons. Ownership of U.S. Steel could provide a shield for Nippon Steel from the impact of tariffs on non-U.S. operations, said Alistair Ramsay, vice president of Rystad Energy. "Should underlying demand in the United States begin and continue to recover, then we would expect the investment to pay off in good time, regardless of the duration of tariffs," he said. "But that's a big if, given how far the U.S. market has shrunk over the past few years, never mind this century." U.S. steel consumption is expected to rise by 2% this year after a drop of 1.5% in 2024, according to WorldSteel. This month, Nippon Steel said it would cut its dividend for the current fiscal year to 120 yen a share, off last year's 160 yen, and its lowest since 2021, amid a projected fall in profits, but the overall payout ratio would stay at 30%. "For the investor who cares about the share price today, you wouldn't be looking at factoring in synergies based on what you think might happen in two to three years," said the adviser, who sought anonymity as the matter is a sensitive one.
Reuters
6 days ago
- Business
- Reuters
Markets ask how soon Nippon Steel will benefit from $15 billion bid for U.S. Steel
TOKYO, May 29 (Reuters) - Nippon Steel (5401.T), opens new tab investors and analysts are asking if its $15-billion deal to buy U.S. Steel (X.N), opens new tab, backed but not yet approved by President Donald Trump, is positive for the near term, even if its hopes for strong U.S. demand materialise. Such a merger would create the world's third-largest steel producer by volume, after China's Baowu Steel Group and Luxembourg-based ArcelorMittal ( opens new tab, data from the World Steel Association (WorldSteel) shows. The "planned partnership" would create at least 70,000 jobs and add $14 billion to the U.S. economy via Nippon Steel's additional investments, Trump said last week. While full details of the deal remain unclear, U.S. Steel shares surged 21% on the news and Nippon Steel gained 7%. Nippon Steel did not exclude issuing new shares to fund the takeover, Vice Chairman Takahiro Mori said in December, after having already raised some funds through hybrid financing and asset sales. "If the new equity is issued, investors will rightly be asking: is this the best possible use of capital at this moment?" said Fiona Deutsch, lead analyst with Australasian Centre for Corporate Responsibility (ACCR). The company had pledged an investment of up to $4 billion in a new coal-dependent blast furnace, said Deutsch, whose climate activist group holds less than 1% of Nippon Steel's shares. That plan, part of a wider investment commitment of $14 billion, comes "at a time when the global steel sector is shifting towards low-carbon alternatives", she added. Nippon Steel shares were up 1% by 0405 GMT, outperforming the overall Nikkei index (.N225), opens new tab which was up 1.6%. Unveiling the deal in late 2023, Nippon Steel offered $55 for each share of U.S. Steel, for a premium of 40% at the time. U.S. Steel shares closed at $53.3 on Wednesday. "There's a lot of immediate negative effects, even though the long-term effect may be positive," said an adviser to institutional investors on strategies for Nippon Steel. He cited the dilution as a further deterrent, besides the high offer price and additional investment commitments. Nippon Steel did not reply to a Reuters request for a comment. "In the short term, there are concerns about financing," said Shinichiro Ozaki, a senior analyst at Daiwa Securities. "Given that U.S. Steel reported a net loss for the January-March period, the stock market may worry about the limited likelihood of a short-term return on the investment." Projections that domestic demand will stay weak have pushed Nippon Steel, which is Japan's largest steelmaker, and others to look to overseas expansion, while they consider shutting some blast furnaces at home. U.S. Steel is key to Nippon Steel's goal to raise its global output capacity to more than 100 million metric tons a year from 63 million tons now, as it aims to benefit from demand in India and the United States. Both markets are relatively protected from vast steel exports from China, the world's top producer, thanks to protectionist measures they have adopted, such as tariffs. In March, Nippon Steel President Tadashi Imai, who also chairs the Japan Iron and Steel Federation, warned that U.S. auto and steel tariffs could cut several million tons from Japan's annual steel output to below 80 million tons. Ownership of U.S. Steel could provide a shield for Nippon Steel from the impact of tariffs on non-U.S. operations, said Alistair Ramsay, vice president of Rystad Energy. "Should underlying demand in the United States begin and continue to recover, then we would expect the investment to pay off in good time, regardless of the duration of tariffs," he said. "But that's a big if, given how far the U.S. market has shrunk over the past few years, never mind this century." U.S. steel consumption is expected to rise by 2% this year after a drop of 1.5% in 2024, according to WorldSteel. This month, Nippon Steel said it would cut its dividend for the current fiscal year to 120 yen a share, off last year's 160 yen, and its lowest since 2021, amid a projected fall in profits, but the overall payout ratio would stay at 30%. "For the investor who cares about the share price today, you wouldn't be looking at factoring in synergies based on what you think might happen in two to three years," said the adviser, who sought anonymity as the matter is a sensitive one.
Malay Mail
26-05-2025
- Business
- Malay Mail
Takahiro Mori's garage meetings and sleepless flights: The Nippon Steel executive who wouldn't quit
TOKYO, May 27 — Snow lay thick in the Pittsburgh suburbs as Takahiro Mori, a bespectacled, 67-year-old executive from Japan's Nippon Steel, huddled in a cluttered garage with community leaders to reassure them he was not giving up on a bid to buy the town's steel mill. Just days before the early January meeting, US President Joe Biden had blocked Nippon Steel's proposed US$14.9 billion (RM62.8 billion) takeover of US Steel, a move both companies said risked thousands of jobs and billions of dollars in investment. With Biden's incoming successor Donald Trump also voicing opposition to the planned purchase, the outlook was bleak. Fast forward five months and the persistence shown by the firm's chief negotiator seems set to pay off, with Trump now signalling he is prepared to support a deal. 'It's been a long, hard battle,' said Chris Kelly, the 70-year-old mayor of West Mifflin who hosted Mori for the January meeting at his garage-cum-office on a suburban residential street near US Steel's ageing Irvin plant. He said he has met Mori on several occasions since Nippon Steel's bid was first unveiled in late 2023, including at an American football game and a Pittsburgh restaurant just over a week ago when the Japanese executive flew in to give an update on the latest developments of the planned takeover. Nippon Steel declined to comment on the meetings. Mori, a 40-year company veteran, has been the public face of Nippon Steel's extensive efforts to convince local workers, officials and US lawmakers of the economic merits of a merger plan that has had to weather a political firestorm. 'I just have a strong desire to make this work somehow,' a calm and smiling Mori, who serves as the company's vice chairman and executive vice president, told Reuters in an interview last week when asked about how he had personally endured the saga. Mori said he had made around 10 trips to the United States since the start of the year alone, visiting steel towns and Washington DC, where lawmakers have been deliberating over any potential national security risks posed by the transaction. 'On the plane to the destination, I can hardly sleep,' he said, explaining that he had to read reams of documents, prepare for meetings during the flight, and work through the night to manage tasks back in Japan. There may still be twists ahead. While Trump has said he supports a 'planned partnership' between the two companies, lingering questions remain about the scope of the deal and its costs for the Japanese firm. High stakes For Japan's top steelmaker, US Steel is central to its global expansion strategy at a time when domestic demand is declining. A merger would create the world's third-largest steel producer by volume, after China's Baowu Steel Group and Luxembourg-based ArcelorMittal, according to World Steel Association data. While Mori has had a hand in the firm's overseas expansion efforts in places like Brazil and India, the acquisition of a company centred in the critical swing state of Pennsylvania in an election year presented unique challenges. As soon as the agreement was announced in December 2023, the politically-influential United Steelworkers union issued a statement condemning US Steel for selling the storied American firm to a foreign-owned company. Within weeks, Biden had joined his election challenger Trump in saying he was against the deal, subjecting it to the first of two rounds of national security reviews by the secretive Committee on Foreign Investment in the United States. Just before Trump signalled support on Friday, the union issued a statement alleging Nippon Steel was 'a serial trade cheater' and that the sale would be 'a disaster' for American steelworkers. In an interview with Reuters in December, union chief David McCall, said he was frustrated by what he said was the Japanese company's refusal to give assurances about their long-term commitment to the company and its workers. However, he described Mori, his opposite man in those talks, as 'personable'. What appears to have swung the deal back in Nippon Steel's favour with the transactional Trump is money. The firm has plans to invest US$14 billion in US Steel's operations, including up to US$4 billion in a new steel mill, Reuters exclusively reported last week. But on the ground in Pittsburgh at least, the persistence and personal touch of Mori, who obtained a masters degree from the University of Pennsylvania's Wharton School in 1992, has also left an impression on some of those he has met. 'They've embraced everything about the city of Pittsburgh,' said Kelly, the mayor, recounting that Mori was yelling and waving a towel in support when the pair attended a match for the local Pittsburgh Steelers American football team last year. — Reuters
Japan Times
26-05-2025
- Automotive
- Japan Times
Garage meets and sleepless flights: How Nippon Steel's negotiator stuck at U.S. merger
Snow lay thick in the Pittsburgh suburbs as Takahiro Mori, a bespectacled, 67-year-old executive from Japan's Nippon Steel, huddled in a cluttered garage with community leaders to reassure them he was not giving up on a bid to buy the town's steel mill. Just days before the early January meeting, U.S. President Joe Biden had blocked Nippon Steel's proposed $14.9 billion takeover of U.S. Steel, a move both companies said risked thousands of jobs and billions of dollars in investment. With Biden's incoming successor Donald Trump also voicing opposition to the planned purchase, the outlook was bleak.
