Biden set to raise concerns on Nippon Steel’s takeover of US steel
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The news: US President Joe Biden will issue a statement about Nippon Steel’s planned acquisition of US Steel, ahead of a state visit by Japan’s Prime Minster Fumio Kishida in April.
The numbers: Nippon Steel announced its plans to purchase US Steel for USD14.9 billion ($22.26 billion) in late December, in a move that would give the Japanese giant access to the US steel market.
The context: According to sources cited by the Financial Times, the draft statement which has been shared with the Japanese government, could jeopardise the progress of the deal and create friction between the allied nations.
The deal’s announcement ignited significant bipartisan backlash in Washington, with opponents pushing back on the sale of a US manufacturing icon to a foreign entity. The decision could bear an impact on Biden’s campaigning in the swing state of Pennsylvania, where US Steel and the United Steelworkers Union (which opposes the takeover) are headquartered. Trump has previously criticised the proposed merger.
What they said: When the deal was announced last year, the United Steelworkers Union stated: “To say we’re disappointed in the announced deal between U.S Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long. We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.”
The sources: Financial Times, United Steelworkers Union
