Former U.S. Commerce Secretary Wilbur Ross reacts to bipartisan opposition to Nippon Steel's more than $14 billion acquisition of U.S. Steel in Kudlow.
Nippon Steel said on Friday that its proposed $14.9 billion acquisition of US Steel would not result in layoffs or plant closures as the pending deal faces opposition from… President Biden and auditing by unionized steelworkers.
Japan-based Nippon Steel Company, which announced Proposed acquisition In December, it issued a statement about the deal aimed at addressing the political concerns of the president and the United Steelworkers (USW) union about its potential impact on workers.
“As part of our proposal to USW, at the conclusion of the transaction, we will commit that US Steel will also invest $1.4 billion, increase its current CBA by more than 140%, and there will be no layoffs or plant closures as a result.” “The deal,” Nippon Steel said in the statement. Reuters reported that the company initially indicated that there would be no layoffs or factory closures before September 2026, then reissued the statement to clarify that nothing would happen because of the deal.
The move comes after Biden said Thursday in a statement that “US Steel has been an iconic American steel company for more than a century, and it is imperative that it remains a domestically owned and operated American steel company.”
Biden opposes the sale of American steel to a Japanese company
Nippon Steel said its proposed acquisition of US Steel would not cause layoffs or plant closures. (Justin Merriman/Bloomberg via/Getty Images)
The Biden administration indicated last December that the proposed deal deserved “serious scrutiny” given US Steel’s role in producing steel that is critical to national security. Japan is a treaty ally of the United States under A Mutual Security Agreement Which dates back to 1951.
The proposed deal is subject to review by the Committee on Foreign Investment in the United States (CFIUS), a Treasury Department entity that would have the authority to recommend blocking the deal. Nippon Steel It said it was “progressing through regulatory review, including CFIUS, with confidence in the rule of law, objectivity, and due process that we expect from the U.S. government.”
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| X | United States Steel Corporation. | 38.86 | +0.61 | +1.59% |
| NPSCY | Nippon Steel Company | 8.06 | -0.02 | -0.25% |
US Steel said in a regulatory filing that it expects the deal to close later this year, adding that the deal is an “exciting” development for the two companies, and that if it goes ahead, “NSC and US Steel will share their two world-leading businesses.” Technologies and manufacturing capabilities to be at the forefront of innovation and digital transformation in the steel industry for the benefit of our customers.”
US steelworkers are angry over a multi-billion dollar deal to “sell” employees to a foreign entity
President Biden has expressed his opposition to Nippon Steel's planned acquisition of US Steel. (Brendan Smalowski/AFP via Getty Images)
Nippon Steel's statement also pointed to the company's history of operating its own facilities in the United States and working with American companies in the United States. steel industry Suppliers. The company noted that it “successfully operated facilities with approximately 4,000 U.S. employees, including 620 employees represented by USW (such as Standard Steel in Burnham, Pennsylvania, and Wheeling Nippon Steel in Follansbee, West Virginia).”
Nippon Steel's press release added that the company “has been a friend of the United States for more than 70 years by importing metallurgical coal from U.S. states,” including Pennsylvania, West Virginia, Virginia and Alabama, and expects to continue to do so.
“By increasing the financial investment and contribution of our advanced technologies to US Steel, Nippon Steel will advance American priorities by increasing quality and competitiveness for customers in critical industries that rely on US steel while strengthening US supply chains and the US economy,” the company added. Defenses against China.”
Union: The meeting between the United Steelworkers and Nippon will lead to nothing
US Steel plans to move forward with its acquisition by Nippon Steel. (Justin Merriman/Bloomberg via/Getty Images)
the United Steelworkers Union (USW). The union “shares concerns about the long-term impacts of the sale on our economy and national security,” he said in a press release Thursday after President Biden's announcement.
“Allowing one of our nation’s largest steelmakers to be acquired by a foreign-owned company leaves us vulnerable when it comes to meeting our critical defense and infrastructure needs,” the USW statement continued. “The President’s statements should end the debate: US Steel must remain locally owned and operated.”
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Former President Donald TrumpThe presumptive GOP presidential nominee expressed his opposition to the deal in late January, saying he would “immediately block it,” adding, “We saved the steel industry. And now, Japan is buying American steel. It's absolutely terrible.”
FOX Business' Breck Dumas and Reuters contributed to this report.
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