U.S. Steel and Japanese purchaser Nippon Steel reaffirmed their commitment to keeping U.S. Steel as an “iconic American company” following a planned $14.9 billion acquisition, aligning with President Joe Biden‘s assurances to local steelworkers.
Responding swiftly after Biden’s vow that U.S. Steel would remain wholly American, both steel giants echoed their pledge during an event in Pittsburgh.
Despite Biden’s expressed opposition to the deal, U.S. Steel Corp has agreed to be acquired by Nippon Steel for $14.9 billion.
The agreement, which has been hanging in the balance since the president’s disapproval last month, is now emphasized as important for preserving the American identity of U.S. Steel.
In a joint statement, the companies emphasized that the partnership between U.S. Steel and Nippon Steel is aimed at ensuring the longevity of U.S. Steel as an iconic American entity.
They assured that the company’s renowned name would remain unchanged, and its operations would continue to be rooted in America, safeguarding jobs and manufacturing facilities.
Furthermore, the partnership is positioned to enhance the resilience of the U.S. steel industry against challenges posed by China and to bolster the essential alliance between the United States and Japan.
Following the announcement, U.S. Steel’s shares experienced a 2.9% decline, closing at $39.13, while Nippon Steel’s shares saw a 1.05% increase, reaching 3,468 yen on Thursday morning in Tokyo.
Biden’s visit to Pittsburgh, ahead of the upcoming presidential election, was marked by his advocacy for stronger tariffs on Chinese metal imports and his call for new investigations into their trade practices, during a visit to the United Steelworkers union headquarters.
Despite Biden’s opposition to the acquisition, it remains uncertain whether his administration will take active steps to prevent the deal from proceeding.
However, the commitment to keeping U.S. Steel rooted in America echoes Biden’s pledge to prioritize the preservation of American jobs and industries.
