President Biden reportedly set to block sale of Pittsburgh's U.S. Steel to Japan-based Nippon Steel
WASHINGTON (KDKA) - President Joe Biden is reportedly preparing to block the sale of U.S. Steel to Nippon Steel.
As of Wednesday morning, a U.S. National Security Panel is reviewing the proposed $15 billion deal and the panel has to refer its decision on the merger to President Biden by December 22 or 23.
Bloomberg News reports that once it happens, the president is expected to block the deal on grounds of national security.
That news comes as Nippon Steel announced it would give union employees of U.S. Steel each a $5,000 bonus should the deal go through.
They also have promised to invest $1 billion in U.S. Steel's Mon Valley Works.
Both President-Elect Trump & President Biden agree on blocking sale
Earlier this month, the president-elect said he vowed to block the sale of U.S. Steel to the Japanese company Nippon Steel.
"I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan," Trump wrote on Truth Social. "Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!"
In response to Trump's comments, Nippon Steel said it was "determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency and US national security."
"We will invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at U.S. Steel can manufacture the most advanced steel products for American customers," the Japanese firm said in a statement.
Late last year, President Biden also expressed skepticism of the deal. Biden said at the time that "serious scrutiny" was warranted for the planned acquisition of U.S. Steel by Japan's Nippon Steel.
Biden's statement at the time said he "believes the purchase of this iconic American-owned company by a foreign entity — even one from a close ally — appears to deserve serious scrutiny in terms of its potential impact on national security and supply chain reliability."
What does a potential sale of U.S. Steel mean for Pittsburgh?
At 150 years old, The Mon Valley Works — Edgar Thomson Plant is in desperate need of an overhaul, and though Nippon Steel has promised $1 billion in upgrades, the United Steelworkers union leadership opposes the U.S. Steel sale to the Japanese steelmaker, even if the steelworkers themselves are divided.
Even as the steelworkers union has also discounted Nippon's promises of keeping the headquarters in Pittsburgh and that billion-dollar investment, Pennsylvania Gov. Josh Shapiro says he's been working on all sides to broker a deal to protect jobs and steelmaking in Western Pennsylvania and he'll continue despite Trump's post.
"I'm less about social media posts and more about doing the hard work," Shapiro said.
On Tuesday, The United Steelworkers responded, agreeing with President Biden's reported blocking of the deal, calling Nippon's offer of $5,000 to union members "attempted bribery."
"Nippon Steel today employed a classic union-busting tactic in a final, desperate attempt to win over support for its doomed acquisition of U.S. Steel: simple bribery," the statement read. "We have seen this sort of corporate behavior before, and we know what it really means. Nippon is begging union members to trade our long-term stability and bargaining power in exchange for a single payment. But we won't be fooled. This offer ultimately does nothing to change the stakes of the deal, the lasting damage it could do to our domestic steel industry, or the grave implications for our national and economic security."