U.S. Steel and Nippon Steel have reaffirmed their promise to maintain U.S. Steel as a symbol of American industry after Nippon Steel’s planned $14.9 billion purchase, aligning with President Joe Biden’s assurances to American steelworkers.
Following Biden’s statement that U.S. Steel should remain entirely American, both companies reiterated their commitment at an event in Pittsburgh.
Despite Biden’s objection to the deal, U.S. Steel Corp has agreed to be bought by Nippon Steel for $14.9 billion.
The deal, which was uncertain after the president’s disapproval last month, is now emphasized as crucial to preserving U.S. Steel’s American identity.
In a joint statement, the companies emphasized that their partnership aims to ensure U.S. Steel remains a respected American entity.
They assured that U.S. Steel’s well-known name would stay the same, and its operations would continue to be based in America, protecting jobs and manufacturing facilities.
Joe Biden (Via Pablo West/Shutterstock)
Additionally, the partnership aims to strengthen the resilience of the U.S. steel industry against challenges from China and to reinforce the vital relationship between the United States and Japan.
Following the announcement, U.S. Steel’s shares fell by 2.9%, closing at $39.13, while Nippon Steel’s shares rose by 1.05%, reaching 3,468 yen on Thursday morning in Tokyo.
During Biden’s visit to Pittsburgh, ahead of the upcoming presidential election, he advocated for higher tariffs on Chinese metal imports and called for new investigations into their trade practices at the United Steelworkers union headquarters.
Despite Biden opposing the acquisition, it remains unclear if his administration will actively intervene to block the deal.
However, the commitment to keeping U.S. Steel rooted in America echoes Biden’s promise to prioritize American jobs and industries.
