According to a Bloomberg report on Monday, Nippon Steel Corp. made a formal commitment to the United Steelworkers union regarding spending and jobs. The news has pushed U.S. Steel (X) shares up 2%.
The move is said to back up a commitment made in an earlier meeting, with the Japanese steelmaker looking to increase support for its $14.1 billion acquisition of U.S. Steel (X).
Bloomberg said its sources told them Nippon Steel submitted the proposed “bilateral agreement” last week, as well as a letter to US Senators Bob Casey and John Fetterman, who are Pennsylvania Democrats opposing the purchase.
The document puts in writing previous pledges made during a meeting between Nippon Steel’s leadership and the union. However, these pledges have so far failed to sway the labor group.
According to the document, the transaction includes an extra $1.4 billion in capital spending. Additionally, the letter states that there will be no layoffs…
