As President Joe Biden prepares to halt the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel Corp, the head of United Steelworkers, David McCall, has urged a rework of the deal and suggested that U.S. Steel’s board replace its CEO to gain union support. McCall, in a recent interview, voiced strong criticism of U.S. Steel CEO David Burritt, arguing that a change in leadership is necessary to secure the union’s backing and keep the American steel industry strong.
POTUS is considering blocking the sale of US Steel to Nippon Steel which could result in layoffs in Pennsylvania.
Biden (or Harris) will need to elaborate why the sale could impact national security. Otherwise, this may look like a nationalistic move. https://t.co/gMTuM2aVEq
— Steven Chung (@stevenchung) September 6, 2024
McCall, who met with Nippon Steel’s Executive Vice President Takahiro Mori earlier this summer, laid out the union’s conditions for the acquisition, stressing that Nippon Steel’s parent company must sign the deal. He also took issue with Burritt’s concerns about the potential closure of U.S. Steel facilities and the possible relocation of its headquarters from Pittsburgh, calling these statements “irresponsible and baseless.”
Despite opposing Burritt’s leadership, McCall emphasized that he does not believe U.S. Steel should be divided among multiple buyers, which has been a topic of discussion among various bidders. He highlighted the strategic importance of keeping U.S. steel production intact, citing national security and critical supply chain concerns. “We need to melt, pour, and finish steel in this country,” McCall stated, underscoring the union’s stance on maintaining domestic steel production.
The Biden administration’s move to block the deal aligns with national security concerns, as both Democrats and Republicans, including Vice President Kamala Harris and former President Donald Trump, have voiced their opposition to U.S. Steel falling under foreign ownership. The Treasury Department is currently reviewing the deal, and Biden is reportedly awaiting its findings before officially enacting the restriction.
“Japan PM Candidate Warns Biden’s Opposition To Nippon’s US Steel Acquisition Could ‘Undermine The Trust Of Its Allies'” #SmartNews https://t.co/ue4bu5HJhV
— Thomas Abendschein (@AntiWorldGover) September 6, 2024
Nippon Steel has attempted to sway opinion by pledging an additional $1.3 billion investment in U.S. Steel’s plants. However, the acquisition has faced significant political and union resistance, with many emphasizing the need for U.S. Steel to remain “American owned and operated.”
In response to potential rejection of the deal, both companies have warned of serious consequences, including the closure of blast furnace facilities, job losses, and disruptions in steel supply to key U.S. industries.
Key Points:
i. President Joe Biden is preparing to block Nippon Steel’s $14.9 billion acquisition of U.S. Steel over national security concerns.
ii. United Steelworkers leader David McCall criticized U.S. Steel CEO David Burritt and suggested the company rework the deal and replace its CEO.
iii. The acquisition faces bipartisan opposition, with concerns about U.S. Steel remaining “American owned and operated.”
iv. Nippon Steel pledged an additional $1.3 billion investment in U.S. Steel plants, but resistance from unions and politicians remains strong.
v. The companies warn that rejecting the deal could lead to facility closures, job losses, and supply chain disruptions.
Fallon Jacobson – Reprinted with permission of Whatfinger News