U.S. Steel has received a favorable ruling from an arbitration board regarding Nippon Steel's proposed $14.9 billion buyout, despite significant opposition from the United Steelworkers (USW).

The arbitration board confirmed that U.S. Steel met all conditions of the successorship clause in its Basic Labor Agreement with the USW, allowing the transaction to move forward.

This ruling effectively resolves all outstanding issues related to the Basic Labor Agreement concerning the acquisition.

Despite the arbitration's decision, the USW remains opposed to the acquisition, arguing that Nippon Steel's commitment to uphold the Basic Labor Agreement does not alleviate their concerns.

The union criticized the arbitration ruling, claiming that the arbitrators accepted Nippon Steel's assurances regarding labor agreements without adequate scrutiny.

U.S. Steel has warned that failing to finalize the deal could jeopardize thousands of union jobs and lead to mill closures, particularly in Pennsylvania.

The acquisition carries significant political implications, especially in Pennsylvania, a key state for both Vice President Kamala Harris and Donald Trump in the upcoming presidential election.

Amid these developments, U.S. Steel has reported strong domestic demand and positive earnings guidance for the third quarter of 2024.

Nippon Steel aims to finalize the acquisition by the end of December, pending regulatory approval, having resubmitted its application to the U.S. national security panel.

The U.S. national security panel has postponed its decision on the acquisition until after the November 5 presidential election due to concerns over national security and the steel supply chain.

U.S. Steel CEO David Burritt expressed optimism about the merger's success, believing it will benefit shareholders and employees while passing scrutiny from the Committee on Foreign Investment in the United States.

Nippon Steel has committed to maintaining a productive relationship with the USW, pledging to invest at least $1.4 billion in USW-represented facilities and to avoid layoffs during the labor agreement's term.