Joe Biden Calls for Investigation into US Steel Sale to Japan’s Nippon

• The White House is investigating Nippon Steel’s plan to acquire US Steel due to national security concerns.
• The $15 billion acquisition would create one of the world’s largest steel companies.
• The deal is criticized by the United Steelworkers (USW) union as “shortsighted.”

The White House is calling for an investigation into Nippon Steel’s intention to acquire US Steel, citing national security concerns, despite the close alliance between Japan and the United States.

In a statement on Thursday, they also expressed worry about how the deal might affect the reliability of the supply chain.

The proposed $15 billion purchase of the 122-year-old steelmaker would result in the formation of one of the largest steel companies globally. However, the influential United Steelworkers (USW) union criticized the deal, labeling it as “shortsighted.”

In a statement, Joe Biden’s national economic adviser, Lael Brainard, said the US president believed that “the purchase of this iconic American-owned company by a foreign entity—even one from a close ally—appears to deserve serious scrutiny”.

Ms. Brainard mentioned that President Biden sees US Steel as a crucial part of the entire American steel production. In his bid for re-election, President Biden has positioned himself as a strong supporter of unions, even going so far as to stand with striking car workers on the picket line. The White House emphasized President Biden’s belief that union workers are among the best in the world.

The United Steelworkers (USW) expressed appreciation for the White House’s statement, indicating that they believe the proposed deal could have a significant influence on the future of domestic steel production.

“US Steel has made it clear, time and again, that its first and only priority is short-term financial gain for shareholders, even if this comes at the expense of workers,” it added.

Nippon Steel has stated that acquiring US Steel would be beneficial for its long-term growth, as it expands its presence in the United States. The company anticipates growth in the US steel industry, fueled by recent government investments in infrastructure and electric cars.

Japan’s largest steelmaker assured that it would uphold existing contracts with union workers at US Steel, and the company would maintain its name, brand, and headquarters in Pittsburgh.

US Steel has been seeking a buyer since August but turned down smaller offers from domestic competitors like Cleveland-Cliffs and Nucor. Nippon’s bid was nearly twice the amount offered by US bidders.

Founded in 1901 by business magnates Andrew Carnegie and JP Morgan, US Steel was once among the world’s largest companies, driven by the growth and industrialization in the United States. However, like the broader US steel industry, its dominance has diminished over the years due to increased competition from cheaper foreign sources.

Currently, US Steel employs around 22,000 people globally, with more than 14,000 of them in the United States.

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