In the American heartland, President Joe Biden claimed to be defending decent employment by preventing a Japanese corporation from acquiring US Steel. Maybe he’s endangering them instead.
When Nippon Steel made its roughly $15 billion bid for the legendary Pittsburgh-based steelmaker, it pledged to invest $2.7 billion in US Steel’s outdated blast furnace operations in Gary, Indiana, and the Mon Valley of Pennsylvania. Additionally, it promised not to cut production capacity in the US for the following ten years without first obtaining permission from the US government.
Jason Zugai, a vice president of the United Steelworkers union local and an operational technician at a US Steel facility in the Mon Valley, stated, “They were going to invest in the Valley.” “They agreed to ten years of no interest in this.
Losing the Nippon-U.S. Steel contract “will be a disaster for Pennsylvania,” according to Gordon Johnson, founder of GLJ Research and a Wall Street stock watcher of US Steel. “I don’t comprehend at all. The workers are not benefiting from this. It is not advantageous to US Steel’s shareholders. Biden announced on Friday that he was halting the Nippon takeover because “a strong domestically owned and operated steel industry represents an essential national security priority…. Without domestic steel production and domestic steel workers, our nation is less strong and less secure.” This came after federal regulators cannot agree on whether to approve the takeover. The news on Friday caused US Steel’s stock to tumble 6.5 percent.
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