President Joe Biden has made a firm stance against the proposed $14.9 billion merger between U.S. Steel and Japan’s Nippon Steel Corp., aligning himself with concerns raised by lawmakers and unions regarding the sale of a significant American institution to a foreign entity.
Biden opposes sale of U.S Steel to Nippon Steel :Biden’s Stand for American Steel
In a statement released Thursday, President Biden emphasized the importance of maintaining robust American steel companies driven by American workers. He echoed sentiments shared by legislators and labor unions, underlining the necessity for U.S. Steel to remain domestically owned and operated.
Biden opposes sale of U.S Steel to Nippon Steel : Shifting Priorities
This statement marks a departure from a milder stance taken by the White House in December, where Biden suggested the deal warranted scrutiny due to potential implications for national security and supply chain reliability, advocating for review by the Committee on Foreign Investment in the United States (CFIUS).
Backlash and Opposition
Despite U.S. Steel’s CEO David B. Burritt touting the merger as beneficial, bipartisan opposition has swiftly emerged. Lawmakers such as Republican Sens. JD Vance, Josh Hawley, Marco Rubio, and Democratic Sens. Sherrod Brown and Joe Manchin have voiced concerns over its impact on American workers and trade deficit.
Biden opposes sale of U.S. Steel to Nippon Steel : Union Resistance
The United Steelworkers union has vehemently opposed the deal, citing potential breaches of labor agreements, pension plans, and healthcare obligations. They’ve expressed unwavering opposition to Nippon’s proposed acquisition of U.S. Steel.
Biden opposes sale of U.S Steel to Nippon Steel : Deal Dynamics
Under the terms, Nippon plans to acquire U.S. Steel in an all-cash transaction valued at $55 per share, totaling approximately $14.9 billion including debt assumption. Nippon has assured that no jobs will be lost, pledging to retain the U.S. Steel name and its Pittsburgh headquarters.
Divided Opinions
While Nippon remains optimistic about completing the acquisition, former officials like Larry Summers, Pat Toomey, and Wilbur Ross have publicly supported the deal, dismissing national security concerns and emphasizing the infusion of capital into the U.S. steel industry.
Legal Representation
U.S. Steel is represented by Wachtell Lipton Rosen & Katz and Milbank LLP, while Nippon is represented by Ropes & Gray LLP.
