According to the Securities Times app, Nippon Steel stated on Friday that if it successfully acquires United States Steel (X.US), the company will sell 50% of its stake in the joint steel plant with ArcelorMittal (MT.US) in Calvert, Alabama.

Nippon Steel stated that after selling the NS Kote holding company, which owns a stake in the joint steel plant, to ArcelorMittal for $1, they will record a consolidated loss of about 230 billion yen (approximately $1.55 billion). However, Nippon Steel also added that if the acquisition of United States Steel is not completed for any reason, the transaction to sell NS Kote to ArcelorMittal will not be completed, and it will not affect the profit performance.

In December last year, Nippon Steel, the world's fourth-largest steel manufacturer, announced a $14.9 billion all-cash acquisition of United States Steel, with an acquisition price of $55 per share. With its strong financial resources, Nippon Steel hopes to expand its footprint in the United States through this acquisition, strengthen its position as a global giant, and use overseas expansion to respond to weak domestic demand. The acquisition is also expected to increase the company's global crude steel production capacity to 0.1 billion tons.

However, since the announcement, this acquisition plan has encountered repeated setbacks and strong backlash in the United States. Previously, this acquisition plan has been unanimously opposed by President Biden, Vice President and Democratic presidential candidate Harris, and Republican presidential candidate Trump. They generally oppose foreign ownership of United States Steel because the steel it produces is an essential commodity for building ships, trains, and infrastructure.

This transaction has become a politically sensitive issue, and both candidates are vying for the support of labor unions. Harris stated at a rally in the swing state of Pennsylvania, where United States Steel is headquartered, that she hopes United States Steel will continue to be "owned and operated by Americans," echoing Biden's view. Trump, on the other hand, promised to block the acquisition agreement if elected.

Previously, according to an insider, the Committee on Foreign Investment in the United States (CFIUS) allowed both companies to resubmit their application for approval of the transaction for Nippon Steel's acquisition of United States Steel. This means that the review decision for this politically sensitive transaction will be postponed until after the US presidential election on November 5.

At the end of September, United States Steel stated that the arbitration panel had ruled in favor of Nippon Steel's $14.9 billion acquisition of the company, but the United Steelworkers union (USW) disagreed with this decision. The arbitration panel, jointly selected by the company and the union, ruled that United States Steel had met all the conditions of the Successorship provision in the Basic Labor Agreement (BLA) signed with USW. However, the union stated that this decision did not change its opposition to the agreement.

Nippon Steel previously stated that the company will invest billions of dollars in United States Steel, "without a doubt" enabling it to "maintain and possibly increase steel production capacity in the United States." Nippon Steel also reiterated that it will not transfer any capacity or jobs of United States Steel overseas, nor will it interfere in any decisions regarding trade issues of United States Steel, including decisions to take trade measures against unfair trade practices according to U.S. laws.