Claiming that the sale would threaten US security, President Joe Biden on Friday blocked a Japanese company’s offer to buy US Steel for $15 billion.
“Steel manufacturing – and the steelmakers who produce it – are the backbone of our nation,” Biden said in a speech statement. “A strong domestic steel industry is a significant national security priority and critical to resilient supply chains.”
Biden’s decision came after the Committee on Foreign Investment in the US consensus could not be reached on security risks associated with the sale last month, leaving the decision up to the president. The commission reviews business transactions between U.S. companies and foreign investors and can block sales or force parties to change the terms of a deal to protect national security.
In limbo over last year’s presidential election in the swing state of Pennsylvania, Japan’s Nippon Steel Corporation’s proposal to buy the venerable 124-year-old Pittsburgh-based U.S. Steel was met with opposition from Biden, as well as from Vice President Kamala Harris and President-elect Donald Trump, each of whom warned that the sale would threaten thousands of Pennsylvania jobs.
» READ MORE: Everything you need to know about the Pa. steel deal. at the center of the presidential election
The reaction to Biden’s order came quickly.
Pennsylvania Gov. Josh Shapiro noted in a statement Friday that he expects U.S. Steel “to honor its commitments to Western Pennsylvania” and “refrain from endangering the jobs of U.S. Steel workers.” He added that although Biden has suspended the sale, “this thing is not over yet.” He concluded that “we must find a long-term solution that protects the future of the steel industry in Western Pennsylvania and the workers who built U.S. Steel and built this country.”
In his Friday statement, Lt. Gov. Austin Davis emphasized the need for a “long-term plan to sustain steel production in the Mon Valley and protect the livelihoods of Pennsylvania workers.”
He added: “Governor. Shapiro and I will continue to work 24/7 to unite all parties to protect Pennsylvania jobs and ensure that Western Pennsylvania remains critical to the future of America’s steel industry.”
Strongly opposed to Biden’s move, Republican Dan Meuser, who has represented parts of northeastern Pennsylvania since 2019, denigrated it as “politically motivated.” Then in a statement Friday, he said blocking Nippon Steel’s bid was a “significant blow to Pennsylvania and the U.S. steel industry.” Meuser also criticized Biden for treating ally Japan as if it were an “enemy like China.”
He also said 90% of Pennsylvania steelworkers would support the deal.
International President of the United Steelworkers David McCallHowever, in Friday’s statement he expressed a different opinion. He said the union is “grateful” to Biden for his “willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers.”
“We now call on US Steel’s management to take the necessary steps to enable the company to continue to grow and remain profitable,” he added.
Sen. John Fetterman (R-Pa.), the former mayor of Braddock, where U.S. Steel operates a plant across the street from his home, said in a statement Friday that he “will trust and act on the union’s wisdom and opinions.” ,” calling the original sale proposal “a death sentence for Mon Valley Works.”
Pennsylvania’s new Republican senator, Dave McCormick, who was sworn in on Friday, could not be reached for comment. During the campaign, he called the deal a “tragedy.”
Last year, the steelworkers’ union argued unsuccessfully in an arbitration court that the Japanese company did not fully understand the commitment needed by its workers and surrounding communities, raising concerns about Nippon’s labor practices and financial transparency, She reported to PBS. However, the arbitration panel said it recognized Nippon’s obligations to US Steel – including an investment of at least $1.4 billion in union-represented facilities – and allowed the transaction to proceed.
Spending a joint statementUS Steel and Nippon rebuked Biden, saying they were “appalled by President Biden’s decision… which reflects a clear violation of due process and the law.
“[T]this process was manipulated to further President Biden’s political agenda,” the statement continued. “The President’s statement and executive order provide no credible evidence of a national security issue, clearly indicating that this was a political decision. Following President Biden’s decision, we have no choice but to take all appropriate actions to protect our rights.”
The proposal of the Japanese concern Nippon Steel to purchase the steel concern from Pittsburgh has been considered for some time.
According to them, Biden planned to block the transaction in September reports. But, Washington Post Office he said after Democratic officials in Pennsylvania raised alarm about the potential economic and political costs of a move in such a critical swing state, he agreed to postpone a decision until after the presidential election.
During the presidential campaign, Harris and Trump emphasized the political importance of Pennsylvania as a key battleground state and their faith in the United Steelworkers union as a politically powerful voting bloc.
Currently, US Steel is the third largest steel producer in the country, accounting for less than 20% of domestic steel production.
Late last summer, U.S. Steel executives warned that preventing a sale would close some steel mills, eliminating thousands of union workers, and signaled that the company would move its headquarters outside Pennsylvania if the Nippon deal fell through. – according to a Reuters report.
