U.S. Steel has indicated it may close mills and potentially relocate its headquarters out of Pittsburgh if the $14.9 billion buyout by Nippon Steel collapses. In an interview with the Wall Street Journal, CEO David Burritt emphasized that the nearly $3 billion investment pledged by Nippon for U.S. Steel’s aging mills is essential for maintaining competitiveness and protecting jobs.
Burritt stated, “We wouldn’t do that if the deal falls through. I don’t have the money,” highlighting the critical nature of the investment for the company’s future. The proposed deal has faced mounting criticism from U.S. politicians and labor unions since its announcement in December. Notably, Democratic presidential candidate Kamala Harris and Republican nominee Donald Trump have expressed opposition, with Trump pledging to block the deal if elected.
To address concerns, both U.S. Steel and Nippon Steel have highlighted the benefits of the acquisition. Nippon has assured that the core senior management and a majority of board members at U.S. Steel would be U.S. citizens should the deal proceed. Burritt also mentioned that an expanded mill in Arkansas would facilitate the closure of the Mon Valley facility, marking the end of steelmaking operations in Pittsburgh.
The deal has already received necessary regulatory approvals from outside the U.S. and has been greenlit by U.S. Steel’s shareholders. It is currently undergoing regulatory review within the United States.