The American company warns that blocking the $15 billion (€13.53 billion) deal could put thousands of jobs at risk.
The White House prepares for the possible blocking of the acquisition of US Steel by the Japanese Nippon Steelaccording to the newspapers ‘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 end as soon as this month.
Biden had already expressed his objections to the mergerbacking his supporters from the United Steelworkers union who oppose the deal. The objection has weight, since US Steel has its site 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 HarrisDemocratic candidate for president in the November elections, was against of the agreement this week. The former president Donald TrumpRepublican candidate, had also said that would block the merger of being in the White House.
Las actions the US Steel fell almost 20% upon learning that Biden could stop the merger. The CFIUS review process generally 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 problem associated with this transaction, since Japan is one of our 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 He said the company had not received any updated information from the federal government about the review process. Tucker Elcock, who works for the advisory 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 sector on a “more solid foundation“.
He added that Nippon Steel “strongly believes that the US Government must properly manage the procedures on this matter.” according to the law“. US Steel hosted a rally in support of the acquisition on Wednesday.
Thousands of jobs in danger if the operation does not prosper, 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-paying union jobs at risknegatively affecting numerous communities where its facilities are located and depriving the American steel industry of the opportunity to better compete on the world stage.”
Nippon Steel announced on $15 billion deal (13,530 million euros) in December 2023 and US Steel shareholders approved it in April of this year.
