U.S. Steel takeover by Japanese company blocked by Biden Administration
PHILADELPHIA - President Biden’s move to block the takeover of U.S. Steel by Japan’s Nippon Steel is being met with widely differing views as the steelworkers union applauds the decision while a Western Pennsylvania mayor says he’s disappointed.
"This is blatant politics at its worst," said Chris Kelly, the mayor of West Mifflin.
Southeast of Pittsburgh, West Mifflin is the home of U.S. Steel’s Mon Valley Works - Irvin Plant. He said Biden’s claim the deal threatens national security has been rejected by experts. He argues U.S. Steel would have benefited. Mayor Kelly said, "Not only strengthen, it would have increased jobs, reduced costs and they planned to reduce the carbon footprint."
President Biden blocks sale of US Steel to Japan's Nippon Steel
Biden previously expressed opposition to the deal and said that U.S. Steel should remain an American-owned and American-operated firm.
Biden’s decision to dump the $14 billion takeover came in a statement citing those national security concerns. Pa. Governor Josh Shapiro, in a statement, wrote, "I expect U.S. Steel to uphold their commitments to Western Pennsylvania, refrain from threatening the jobs and livelihoods of Pennsylvanians who work at the Mon Valley Works and at U.S. Steel Headquarters." U.S. Steel employs some 3,000 workers in Western Pa. and kicks off #3.6 billion in economic impact.
Nippon, in a statement, wrote, "Following President Biden’s decision, we are left with no choice but to take all appropriate action to protect our legal rights."
The President of the powerful United Steelworkers Union, David McCall, said Biden has protected steelworkers. "While the deal would have been a huge windfall for U.S. Steel’s investors, it’s management leadership, the deal advisors, it threatened the long-term security of our members," McCall stated.