Nippon Steel steps up overseas push
US seen as growth market as steel demand in Japan declines
President Hashimoto economic rationale underpins premium

TOKYO, Dec 19 Reuters Nippon Steel said on Tuesday its 14.1 billion deal to buy U.S. Steel would help it tap into a new growth market, as concerns over the huge premium the world39;s fourth largest steelmaker was paying sent its shares down as much as 6.

Nippon Steel has been looking to expand overseas in recent years, as a shrinking population in Japan, where it generates nearly threefifths of its revenue, is dimming the demand outlook for highend steel used for autos and electronic goods.

The acquisition will add 20 million metric tons of crude steel capacity to its 66 million tons and make it a bigger supplier to the U.S. auto industry, which is ramping up output following major carmakers39; recent deals with labour unions.

Nippon Steel aims to complete a global network … by establishing a base in the United States… where steel demand is expected to grow, its president, Eiji Hashimoto, told a news conference.

U.S. Steel is not a competitor to us in the U.S. market or elsewhere, so we can objectively say that it is a best match, he said.

North America contributed just 12 to Nippon Steel39;s total revenue in its latest fiscal year ended in March. The deal marks the firm39;s accelerating overseas push to reduce its reliance on Japan.

U.S. Steel39;s net sales at home last year were 16.8 billion, well over…