mega swerte Trump says will ‘block’ Nippon Steel from taking over US Steel
(FILES) The logo of Nippon Steel Corp. is seen at an office building where the company’s head office in Tokyo on December 19, 2023. – US President-elect Donald Trump on December 2, 2024 said he would “block” a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9 billion including debts. (Photo by Kazuhiro NOGI / AFP)
Washington, United States — US President-elect Donald Trump on Monday said he would “block” a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9 billion including debts.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on his Truth Social platform.
Article continues after this advertisement“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”
FEATURED STORIES BUSINESS BIZ BUZZ: Goodbye, Pepsi plant BUSINESS Change is in the air: A new era begins BUSINESS Another Chinese firm bags deal for Terra Solar constructionEmbattled US Steel has argued that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.
Days after the US election last month, Nippon Steel said it expected to close its takeover of the company before the end of the year, while US President Joe Biden was still in office.
Article continues after this advertisementBiden, too, has opposed the deal, saying it was “vital” for US Steel “to remain an American steel company that is domestically owned and operated.”
Article continues after this advertisementThe deal is being reviewed by a body helmed by Treasury Secretary Janet Yellen that audits foreign takeovers of US firms, called the Committee on Foreign Investment in the United States (CFIUS).
Article continues after this advertisementIn Septembermega swerte, Biden’s administration extended their review, pushing a conclusion on the politically sensitive deal until after the November 5 presidential election.
Nippon, however, was confident it would close the deal by year’s end.
Article continues after this advertisementA Nippon Steel earnings presentation on November 7 maintained that “the transaction is expected to close in… calendar year 2024” pending a US national security review.
“Unless the situation changes dramatically, I believe the conclusion will come by the end of the year,” during Biden’s time in office, vice chairman Takahiro Mori told reporters.
Trump will be inaugurated on January 20.
Protectionist policiesOn the campaign trail, he vowed to install protectionist economic policies to help support US businesses, including threats to restart a trade war with the world’s second largest economy, China.
While running for the White House, he specifically promised to block Nippon’s takeover of US Steel, which is based in the key political battleground state of Pennsylvania.
Trump’s vice presidential pick J.D. Vance also led congressional opposition to the takeover in the US Senate, where the deal has been criticized by both Republicans and Democrats.
Analysts had suggested Trump’s position could soften after the election was over, but Monday’s statement indicated that was not the case.
Major Japanese and American business groups have urged Yellen not to succumb to political pressure when reviewing the proposed acquisition.
The steelworkers union has fought the deal, and criticized a September arbitrators’ ruling that Nippon had proven it could assume US Steel’s labor contract obligations.
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In September, however, some US Steel workers rallied in support of the deal, arguing it would help keep plants open.
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