Nippon's planned acquisition of U.S. Steel defended by CEO, who believes deal will succeed based on its own merits.

• Nippon is crucial for U.S. Steel's success, said CEO David Burritt.
• President Joe Biden has vowed that U.S. Steel will remain American-owned.
• The Committee on Foreign Investment in the United States is currently reviewing the sale.

Despite President Biden's opposition, CEO David Burritt defended the company's planned sale to Japan's Nippon Steel on Tuesday, expressing confidence that the deal will "close on its merits."

"Burritt stated in a CNBC interview that the deal is strong and will enhance national, economic, and job security."

Biden has publicly pledged to keep U.S. Steel under American ownership. Sources close to the matter reveal that the president is set to formally block the $14.9 billion sale. Both Vice President Kamala Harris and former President Donald Trump have expressed opposition to the sale.

Nippon North America has been operating in this location for 50 years, and while it may seem appealing to maintain a consistent company, we cannot achieve success without Nippon, according to Burritt.

U.S. Steel cannot make these investments, according to Burritt, who said the company has an obligation to shareholders. He pointed to Nippon's commitment to invest $2.7 billion in U.S. Steel's struggling mills as an example of how the transaction would save jobs.

"Burritt stated that the issue is resource allocation. The company is three times their size and has the best R&D and technology in the industry for integrated mills."

""Our priorities would not invest in these because we have to decide where we can get the best returns, as we have a fiduciary obligation to our stockholders," Burritt stated."

The Committee on Foreign Investment in the United States is currently reviewing the sale, and Burritt anticipates a decision will be made after the U.S. presidential election in November.

Nippon was informed by CFIUS that the sale could potentially decrease domestic steel production capacity, which could disrupt supply chains in critical sectors such as transportation, infrastructure, construction, and agriculture, as stated in a letter obtained by Reuters earlier this month.

Burritt dismissed potential national security concerns Tuesday by stating that with the signing of the agreement, they would comply with US trade laws.

U.S. citizens will run and direct the board, which is mostly composed of U.S. citizens, according to Burritt.