Nippon Steel (OTC:NISTF) Vice Chairman Takahiro Mori is returning to the U.S. this week to discuss the acquisition of U.S. Steel (NYSE:X), as the Japanese company remains committed to the merger of the two steelmakers despite increasing scrutiny.
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Mori told Reuters that his trip would include talks in Washington, D.C., and mentioned that Nippon Steel might consider selling some assets if required by U.S. regulators to secure approval for the deal. As a result, X shares are slightly up in today’s trading despite the overall market being down.
However, Mori is confident that the deal can close without the need for asset sales. Indeed, he cited the 2011 acquisition of Standard Steel by Sumitomo Metal Industries, which is now part of Nippon Steel, as a precedent. Furthermore, Mori believes the acquisition process will become less polarizing after the U.S. presidential election. It’s worth noting that last week, the two companies announced they had received all regulatory approvals outside the U.S.
What Is the Future of X Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on X stock based on three Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 76% rally in its share price over the past year, the average X price target of $45.25 per share implies 17.81% upside potential.
