Trump Says Nippon Steel will make major investment in U.S. steel
President Trump said on Friday that Nippon Steel was planning to make a major investment in U.S. Steel after the Biden administration moved to block the Japanese company’s $14 billion takeover bid last month on the basis that it was a threat to national security.
Such an investment, if it moves forward, could be a breakthrough for a transaction that ran into U.S. political opposition.
Former President Joseph R. Biden Jr. and Mr. Trump agreed that U.S. Steel should remain American owned and operated. Mr. Biden’s decision to block the deal last month left U.S. Steel’s fate in limbo. The company said it would have to close mills, and layoff workers. Steel is based out of Pennsylvania, which is a key battleground state in the upcoming elections. The powerful United Steelworkers Union strongly opposed the deal. The union reiterated these concerns on Friday.
David McCall, United Steelworkers International president, said: “Our union has not had any contact with either company nor the administration regarding reports about a Nippon Investment in U.S. Steel.” “However, our concerns regarding Nippon’s continued interest in U.S. Steel remain unchanged.”
He added: “While we await the details of the proposed investment, we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives.”
Mr. Mr. Trump did not provide details about the investment, such as how much Nippon would invest in U.S. Steel or how the arrangement would be structured. Ishiba also spoke optimistically about the idea of an investment. Ishiba also spoke optimistically about the notion of an investment.
“Japanese technology will be provided, and the better-quality products will be manufactured in the United States,” he said.
A spokesman for Nippon declined to comment, and a spokeswoman for U.S. Steel did not immediately return a request for comment.
After Mr. Biden blocked the deal, the companies filed a lawsuit, arguing that the review process, which was conducted by the Committee on Foreign Investment in the United States, was corrupted by politics. They claimed that American steelworkers and the steel industry were being harmed because the transaction was blocked.
Lauren Hirsch contributed reporting.
