Private equity firm named successful bidder for Nevada Copper
An affiliate of Kinterra Capital made a stalking horse bid of $128 million for substantially all of Nevada Copper's assets last month.
US Steel CEO David Burritt said on Tuesday he was confident Nippon Steel’s $14.9 billion bid for his company would “close on its merits,” despite political opposition and concerns raised in a national security review.
Burritt, speaking at the Detroit Economic Club, described the review process as “very robust” but added, “we trust the process, we respect the process.”
“We’re very confident it’s going to go through,” he said, referring to the deal. “Our strategy before this happened was ‘better, not bigger.’ With Nippon, it’s ‘better and bigger.'”
The Committee on Foreign Investment in the United States, or CFIUS, did not immediately respond to a request for comment.
The remarks show US Steel is seeking to project confidence after CFIUS, which has been reviewing the deal, appeared poised to block it as recently as Aug. 31.
On that date, CFIUS sent the companies a 17-page letter exclusively reported by Reuters alleging the transaction posed a risk to national security by threatening the steel supply chain for critical US industries.
The companies countered in a 100-page letter, also exclusively reported by Reuters, that the deal would enhance US national security by allowing a company from an allied nation to make a much-needed investment in a struggling US company in a critical sector.
Nippon Steel’s planned acquisition of the US steelmaker also faces opposition from powerful Democrats and Republicans. US Vice President and Democratic presidential candidate Kamala Harris has said she wants US Steel to remain “American-owned and operated,” while her Republican rival Donald Trump has pledged to block the deal if elected.
US Steel is headquartered in Pennsylvania, a crucial swing state hotly contested by both candidates in the Nov. 5 election.
The expected demise of the deal in late August prompted an outpouring of support, including a letter from business groups including the US Chamber of Commerce, raising concerns the transaction was being influenced by political pressure. Such reaction may have helped the companies, with the Washington Post reporting on Friday that a decision on the deal could be postponed until after the election.
But for the decision to be delayed, the companies would need CFIUS to extend a Sept. 23 deadline on the review process, as first reported by Reuters.
CEO Burritt, asked on Tuesday whether the companies had received a response from CFIUS on the requested extension, declined to comment.
The leadership of the United Steelworkers Union, which vehemently opposes the tie-up, said in a letter to members on Tuesday that “the US government should reject the deal for obvious and important national defense reasons, and (US Steel) can remain an independent company.”
(By Ben Klayman and Alexandra Alper; Editing by Mark Porter, Matthew Lewis and Jonathan Oatis)
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