Two Democratic senators from steel-producing states, in a challenging re-election battle, are calling on President Joe Biden to take further action to block Japan's Nippon Steel Corp's proposed acquisition of United States Steel Corp.
US Senator Sherrod Brown of Ohio stated they are pressing the White House on national security and trade enforcement issues regarding the acquisition, emphasizing its implications for American workers and jobs on Bloomberg Television.
President Biden's Public Opposition on The Merger
Despite President Biden's public opposition and stance that the company should be US-owned, United States Steel shareholders voted in favor of Nippon Steel's $14.1 billion takeover offer.
The Biden administration is subjecting the deal to a national security review, a confidential process usually reserved for transactions involving adversarial nations rather than allies like Japan, which could be contested in court by the Committee on Foreign Investment.
While the US Department of Justice has initiated an expanded antitrust investigation into the takeover, introducing further obstacles to finalizing the deal, the companies are contemplating postponing the anticipated timeline.
In a statement titled "Nippon Steel Shows its True Colors," issued on Wednesday, the Steelworkers argued that if Nippon were to acquire US Steel, it would prioritize the Japanese market over the US market, potentially harming American workers.
Senator Sherrod Brown's Merger Opposition
Brown's Senate race is viewed as one of the most fiercely contested this November, which is crucial to win industrial workers over as his re-election prospects. However, despite the steelworkers union's preference for the Ohio-based Cleveland-Cliffs Inc. mining company to make the acquisition, US Steel went against their request.
Senator Bob Casey's Merger Opposition
Democratic US Senator Bob Casey, facing a competitive re-election in Pennsylvania, where US Steel is headquartered, also champions the cause.
During an interview with Bloomberg Television, Casey expressed his main concern about steelworker jobs, citing significant worries about the deal's threat to these jobs. Casey mentioned that he is contacting the White House to inquire about how the disagreement over the acquisition was addressed in Biden's discussions with Japanese Prime Minister Fumio Kishida during his recent state visit.
News Conference with Kishida
During a joint news conference, Biden reaffirmed his opposition to support the United Steelworkers Union, while Kishida expressed optimism that they would result in favorable outcomes for both sides.
The leaders released a joint statement reaffirming their alliance and introducing new defense, technology, and climate initiatives. Bolstering their relationship is essential to offsetting China's influence in the Asia Pacific region.
Nippon Steel's Future Commitment
Nippon Steel agreed to purchase the US Steel at a considerable premium in December last year, asserting that the deal would enhance the US steel industry's competitiveness.
Donald Trump, the presumed Republican presidential nominee, has stated that if elected, he would attempt to prevent the deal.
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