The US company warns that blocking the $15 billion (13.53 billion euro) deal could jeopardise thousands of jobs.
The White House prepares for possible blockage of acquisition of US Steel by the Japanese Nippon Steelaccording to reports in the Washington Post and the Financial Times.
A White House official, who insisted on anonymity, did not deny the report when speaking to the Post, saying the president Biden It has yet to receive an official recommendation from the Committee on Foreign Investment in the United States (CFIUS), a review that could be completed as early as this month.
Biden had already expressed his objections to the mergerbacking his supporters in the United Steelworkers union who oppose the deal. The objection carries weight, since US Steel has its headquarters in it swing state of pennsylvania and is a symbol of Pittsburgh’s industrial might, in a election year in which both Republicans and Democrats promise more jobs in the domestic manufacturing sector.
The Vice President Kamala Harristhe Democratic candidate for president in the November elections, showed against of the agreement this week. The former president Donald TrumpRepublican candidate, had also said that would block the merger to be in the White House.
The actions from US Steel fell by almost 20% as Biden may halt the merger. The CFIUS review process typically concerns business issues with national security implications.
US Steel dismisses any threat to national security
The spokesperson for US SteelAmanda Malkowski, said the company had not received any updates on the process and that the firm does not see “no national security issues associated with this transaction, since Japan is one of ours allies firmer.”
“We look forward to pursuing all possible options under the law to ensure the closing of this transaction, which is the best future for Pennsylvaniathe American steel industry and all of our stakeholders,” Malkowski said.
A spokesperson for Nippon Steel said the company had not received any updates from the federal government on the review process. Tucker Elcock, who works for the consulting firm Teneo, said on behalf of Nippon Steel that it was the “only company willing and able” to make an investment in US Steel that would put the entire industry on a “footing path.”more solid foundation“.
He added that Nippon Steel “strongly believes that the U.S. government should appropriately handle the proceedings on this matter.” according to the law“. US Steel held a rally in support of the acquisition on Wednesday.
Thousands of jobs at risk if the operation does not go ahead, according to the company
The company said in a statement that without the agreement with Nippon Steel, it would “largely abandon its blast furnace facilities, putting Thousands of well-paid union jobs at risknegatively impacting numerous communities in the locations where its facilities are located and depriving the American steel industry of the opportunity to better compete on the global stage.”
Nippon Steel announced the $15 billion deal (€13.53 billion) in December 2023 and was approved by US Steel shareholders in April this year.
Add Comment