The White House said Nippon Steel’s proposed takeover of U.S.
Steel should be considered from a national security perspective, even though Japan is a “close ally.
” In a statement Thursday, the company also expressed concern about the deal’s potential impact on supply chain reliability.
His $15bn (£12bn) acquisition of the 122-year-old steelmaker will create one of the world’s biggest steel companies.
However, the powerful United Steelworkers (USW) also criticized the agreement as “short-sighted.
” Joe Biden’s national economic advisor, Lael Brainard, said in a statement that “any acquisition of this iconic American company by a foreign company, even one from a close ally, deserves serious consideration.
The president said he believed it.
Ms.
Brainard added that President Biden views U.S.
steel as a “core component” of overall domestic steel production.
Mr.
Biden, who is seeking re-election, has shown himself to be one of the most pro-union US presidents by joining the auto workers’ strike line.
“President Biden believes union members are the best workers in the world,” a White House statement said.
USW welcomed the White House statement, saying the agreement “could impact the future of domestic steel production.
” “U.S.
Steel has consistently made it clear that the short-term economic interests of its shareholders are its top and only priority, even at the expense of its employees.
” Nippon Steel said the acquisition improves its long-term growth prospects by expanding its presence in the United States, where recent government investments in infrastructure and electric vehicles are expected to grow the industry.
Japan’s largest steelmaker added that it will honor its existing contract with U.S.
Steelworkers union workers and keep the company’s name, brand and headquarters in Pittsburgh.
U.S.
Steel has been looking for a buyer since August, turning down smaller offers from domestic competitors such as the Cleveland Cliffs and Nucor.
Japan’s bid was nearly double what American bidders were willing to pay.
Founded in 1901 by business titan Andrew Carnegie and his J.P.
Morgan, the company was fueled by the growth and industrialization of the United States, and at its peak became one of the world’s largest corporations.
But like the entire U.S.
steel industry, its dominance has waned over the decades in the face of cheaper foreign competition.
The company currently employs approximately 22,000 people worldwide, including more than 14,000 in the United States.