Arbitration board gives green light to US Steel-Nippon Steel merger over union's objections

Published On Sep 25, 2024, 4:51 PM

Nippon Steel's acquisition of U.S. Steel has received a green light from an arbitration board, which ruled that the deal meets labor agreement requirements despite opposition from the United Steelworkers (USW) union. The arbitration board confirmed that Nippon Steel will recognize the USW and honor agreements made by U.S. Steel. However, the deal is still pending regulatory review by the Committee on Foreign Investment in the U.S. (CFIUS), which is assessing national security implications. U.S. Steel's CEO expressed optimism about the transaction, stating it would benefit employees and communities, while the USW remains critical and intends to continue opposing the merger. If the deal falls through, U.S. Steel has indicated it may have to close some of its steel plants.