Nippon Steel proposal gives U.S. government veto power over potential cuts to U.S. Steel's production capacity
PITTSBURGH (KDKA) -- Nippon Steel is making a new proposal to the Biden administration as it continues its bid to buy U.S. Steel.
The Japanese-based company has proposed giving the U.S. government veto power over any potential cuts to U.S. Steel's production capacity in a last-ditch bid for President Biden's approval, according to the Washington Post.
President Biden and President-elect Donald Trump have publicly opposed the takeover, but as KDKA-TV has reported, many Pittsburgh workers favor the deal.
U.S. Steel says more than 2,000 people have written to the White House urging support for the partnership.
Meanwhile, a government panel recently failed to reach a consensus on the possible national security risks of the nearly $15 billion proposed deal, leaving a decision to President Biden.
A collective of 20 Mon Valley leaders said accepting Nippon's proposed takeover is the only way to ensure thousands of people don't lose their jobs, and steelmaking is preserved in the Mon Valley. They sent a letter expressing their view to President Biden.
The United Steelworkers union opposes the deal, while the steelworkers themselves are divided over the best path to preserve their jobs. Stakeholders on both sides claim the majority of the workers are on their side.
"Our union has been calling for strict government scrutiny of the sale since it was announced. Now it's up to President Biden to determine the best path forward," David McCall, the steelworkers' president, recently said in a statement. "We continue to believe that means keeping U.S. Steel domestically owned and operated."
Nippon Steel already has manufacturing operations in the U.S., Mexico, China and Southeast Asia. It supplies the world's top automakers, including Toyota Motor Corp., and makes steel for railways, pipes, appliances and skyscrapers.
