Japanese steelmaker Nippon Steel’s $14.9 billion bid for American steel producer U.S. Steel is yet to be cleared by U.S. regulators, and many experts believe the deal will have a tough time getting over the finishing line. But it appears that U.S. Steel CEO David Burritt doesn’t share that opinion.
In a recent speech at the Detroit Economic Club, Burritt said that he is “confident” that the deal will go through.
“We’re very confident it’s going to go through,” Burritt stated. “Our strategy before this happened was ‘better, not bigger.’ With Nippon, it’s ‘better and bigger.’”
Under the proposed deal, Nippon Steel would pay $14.9 billion in cash for U.S. Steel, which would become a subsidiary of the Japanese company. The tie-up would create the second-largest steel producer in the world.
The acquisition has been met with significant pushback among American politicians and lawmakers. There are concerns that the deal could pose a threat to national security while also affecting the steel supply across industries in the U.S. that are dependent on the material.
On the other hand, Nippon Steel has made attempts to address some of the concerns. It said it would make investments in refurbishing U.S. Steel’s old steel mills, honor the existing agreements with the United Steelworkers trade union, and keep American citizens in the majority of executive positions.
U.S. officials extended the review deadline for the deal for another 90 days on Tuesday, giving Nippon Steel the option to resubmit its application.