The US president’s comments came as he seeks to increase support in the key battleground state of Pennsylvania.
US President Joe Biden opposes plans to sell the Pittsburgh-based steelmaker to Japan’s largest steel producer, insisting on the need for “strong American steel companies supported by American steelworkers” did.
Biden’s opposition to Nippon Steel’s acquisition of U.S. Steel comes as the Democratic Party seeks to shore up support among labor unions and blue-collar voters in Pennsylvania, a key battleground state, ahead of the November presidential election.
Biden won Pennsylvania in 2020 by less than 100,000 votes after former President Donald Trump became the first Republican to carry the state since 1988 in 2016.
President Trump earlier this year called the proposed takeover of the American brand a “horrible thing” and said he would block the deal.
“I told steelworkers I stood with them, and I meant it,” Biden said in a statement Thursday.
“U.S. Steel has been an iconic American steel company for more than a century, and it is critical that we remain a domestically owned and operated American steel company.”
U.S. Steel shares fell 6.4% following Biden’s comments, after falling a day earlier on news that President Biden would oppose the deal.
US Steel, the second largest steel producer in the United States, announced in December that it had agreed to be acquired by Nippon Steel for $14.1 billion.
The announcement sparked mixed reactions in the United States, with some welcoming the prospect of an injection of new capital and technology, while others condemning the sale of an iconic American brand.
The acquisition proposal is currently being reviewed by the Treasury Department’s Committee on Foreign Investment in the United States (CFIUS), which is expected to make decisions without regard to political considerations.
Biden did not explicitly say on Thursday that he would block the deal, but he has influence over CFIUS because the Treasury secretary, who heads the committee, serves at the president’s pleasure.
The International Steelworkers Union, the largest industrial union in the United States, welcomed Biden’s remarks.
“Allowing a foreign company to acquire our largest steel producer leaves us vulnerable when it comes to meeting both our defense and critical infrastructure needs,” USW International Chairman David McCall said in a statement. Ta.
“The president’s statement must put an end to the debate. U.S. Steel must remain ‘domestically owned and operated.'”
The U.S. Chamber of Commerce criticized CFIUS’s “attempts to politicize” the review process.
“Given Japan’s status as one of America’s most important and trusted allies, this review will certainly support the deal,” U.S. Chamber of Commerce Executive Vice President John Murphy said in a statement. Ta.
“Japanese investment in the United States supports nearly 1 million American jobs, and officials have warned international companies that U.S. politics could jeopardize job-creating investments in the United States.” For these reasons, it is imperative that the CFIUS review proceed, and as expected, the sale will proceed only if national security concerns are uncovered. It should be.”
Biden’s intervention risks upsetting Tokyo, one of Washington’s closest allies in Asia, as the Biden administration seeks to step up joint efforts to counter China.
Japanese Prime Minister Fumio Kishida is scheduled to visit the White House on April 10 for talks focused on strengthening the Japan-U.S. alliance in the face of Beijing’s growing assertiveness.
