U.S. President-elect Donald Trump reiterated his opposition to the planned takeover of U.S. Steel by Japanese firm Nippon Steel for 15 billion USD and vowed to prevent the deal. He also said on his Truth Social network that he would support the U.S. firm’s recovery with a series of tax incentives and tariffs, Reuters reported. The U.S. steelmaker also owns U.S. Steel Košice, formerly East Slovakia Iron and Steel Works.
Trump against the sale of U.S. Steel
“I am totally opposed to the purchase of the once great and powerful U.S. Steel by a foreign company, in this case Japan’s Nippon Steel,” Trump wrote. “I will prevent this deal from happening. Buyer beware!!!”
Nippon Steel hopes to close the deal before Trump takes office, which is Jan. 20. But the deal is also opposed by current President Joe Biden and influential US unions. The merger would create the world’s third-largest steelmaker by production volume. In response to Trump’s comments, Nippon Steel said it would invest at least 2.7 billion USD steel mills where the union operates, provide jobs for union members and share technological innovations. He wants to further develop the company and support US industry.
CFIUS reviews U.S. Steel sale, deadline expires this month
The deal is now under review by the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments for national security risks. The review period ends this month. CFIUS could approve the deal, possibly propose measures to address national security concerns, or recommend that the President block it. But it could also extend the review period.
U.S. Steel was founded in 1901 and is headquartered in Pennsylvania. It used to be a symbol of American economic prowess, but recently has struggled to keep up with foreign competition. Last year, it was ranked 24th among the world’s largest steel mills by the World Steel Association (WSA).
Source: ČTK
