United States: Joe Biden stands against the takeover of US Steel by the Japanese Nippon Steel
Joe Biden opposes the takeover of US Steel for nearly $15 billion by the Japanese Nippon Steel.
The American president, campaigning for a second term, wants the national flagship to remain an American company, controlled and managed from the United States.
A steel plant of the American company US Steel in Braddock, Pennsylvania, November 4, 2022. © Quinn Glabicki / REUTERS
By: RFI with AFP
Advertisement
Read more
President
Joe Biden
, campaigning for a second term, opposes it in the name of defending American “
workers
”.
“
US Steel has been an iconic company for more than a century, and it is vital that it remains an American company, controlled and managed from the
United States
», Said Joe Biden in a press release.
This announcement, likely to offend Tokyo, comes in the run-up to a state visit by Japanese Prime Minister
Fumio Kishida
to the White House, scheduled for April 10.
“
It is important that we maintain strong American steel companies, operated by American workers.
I promised the American steel workers that I would support them and I only have my word
,” added the American president.
The two groups reacted shortly after in a joint statement, saying they had “
confidence that [their] partnership [would] be a success for American jobs and for the American supply chain, while strengthening the competitiveness of the U.S. economy and building resistance against threats from China
.”
They recalled that the Japanese group had “
clearly indicated that there would be no job cuts, no factory closures or transfers of production as a result of this transaction.
»
The buyout by the Japanese giant must be carried out entirely in cash at a price of $55 per share, a premium of 40% compared to the last closing price before the announcement of the operation.
That's $14.1 billion, but including the debt Nippon Steel plans to take on, the total rises to $14.9 billion.
Finalization was expected, at the latest, in the third quarter of 2024.
Faced with the fears of politicians and unions, the two groups submitted their project, at the end of December, to the government agency responsible for assessing the risk of foreign investments for the national security of the United States, the CFIUS.
If the CFIUS considers that a risk exists, it refers it to the President of the United States, who makes the final decision (validation, prohibition, green light under conditions).
Read alsoUnited States: political pressure mounts around the takeover of US Steel by Nippon Steel
An important issue for the presidential election
Since the announcement last December of the takeover of US Steel by the Japanese group, Joe Biden found himself in a delicate position.
Especially since his Republican opponent, Donald Trump, promised to block the operation if he returned to the White House.
The Democratic candidate then showed concern for US Steel.
Because it is not good to alienate the unions and the voters in the state of Pennsylvania where this American industrial flagship has its headquarters.
A state of Pennsylvania which will be crucial for the possible victory of the American president in November 2024. Just as much as Michigan and Wisconsin, two other large industrial centers in the Midwest.
US Steel's appeal comes from its vast decarbonization plan completed in 2023 and supported by Biden's climate plan.
This plan notably includes the installation of electric arc furnaces (EAF) instead of coal-fired blast furnaces, to reduce its carbon footprint.
A plan which should ultimately make its steel more competitive than European steel, thanks to a reduction in production costs.
Newsletter
Receive all the international news directly in your inbox
I subscribe
Follow all the international news by downloading the RFI application
Share :
Continue reading on the same themes:
UNITED STATES
Economy
Raw materials