U.S. Steel and Japanese buyer Nippon Steel have affirmed that the Pittsburgh-based firm will continue to operate as an “iconic American company” following a planned $14.9 billion takeover, aligning with President Joe Biden’s assurance to local steelworkers.
In response to Biden’s pledge that U.S. Steel would remain a “totally American company,” the two steel giants emphasized their commitment to preserving U.S. Steel’s American identity, echoing the president’s opposition to the deal during an event in Pittsburgh.
The proposed acquisition of U.S. Steel Corp by Nippon Steel for $14.9 billion has faced uncertainty since President Biden voiced his opposition last month. The companies released a joint statement asserting that the partnership between U.S. Steel and Nippon Steel is the ideal combination to ensure the preservation of U.S. Steel as an iconic American company for future generations.
The statement assured that U.S. Steel’s renowned name will remain unchanged, and its products will continue to be sourced, processed, and manufactured in America, with a focus on safeguarding jobs and plants. Additionally, the partnership is positioned to enhance the resilience of the U.S. steel industry against challenges from China and reinforce the “crucial” U.S.-Japan alliance.
Following the announcement, United States Steel shares closed down 2.9% at $39.13 on Wednesday, while Nippon Steel shares were trading up 1.05% at 3,468 yen on Thursday morning in Tokyo.
During his visit to the headquarters of the United Steelworkers union, President Biden advocated for increased tariffs on Chinese metal imports and new investigations into their trade practices, emphasizing the need to keep U.S. Steel in America.
While a senior administration official declined to confirm whether Biden would intervene to block the deal, the president’s commitment to preserving U.S. Steel’s American identity was met with resounding support from steelworkers.