China News Service, March 16 (Xinhua) According to comprehensive foreign media reports, U.S. President Biden recently issued a statement officially announcing his opposition to Nippon Steel Co., Ltd. (Nippon Steel)'s $100 billion acquisition of U.S. Steel Corporation (Amtrak).
Analysts believe that the White House's decision is largely based on political considerations and may "cast a shadow" on U.S.-Japan relations.
According to CNN, Biden issued a statement on the 14th saying, "We must retain a strong U.S. steel company driven by American steel workers, and I told our steel workers that I support them and I mean it. ’. U.S. Steel has been an icon of the American steel industry for more than a century, and it’s critical that the United States continues to own it and operate it domestically.”
Data map: US President Biden.
According to reports, starting from December 2023, Nippon Steel plans to acquire Amtrak for US$14.9 billion (approximately 107.2 billion yuan) in cash.
Since the acquisition was announced, it has attracted criticism from Democratic and Republican lawmakers and the United Steelworkers Union, and has faced many obstacles.
National Public Radio (NPR) stated that Amtrak is headquartered in Pennsylvania, which is considered a key state in the 2024 presidential election.
In addition, Amtrak also has operations in places such as Michigan, which are important to the campaign.
Analysts believe that Biden’s main intention in publicly opposing the acquisition is to please union voters in swing states.
Another presidential candidate, former President Trump, also previously stated that if he is elected, he will do his best to prevent Nippon Steel from acquiring Amtrak.
Subsequently, Nippon Steel responded on the 15th that it would invest an additional US$1.4 billion and promised not to lay off employees or close factories before September 2026 to express its determination to acquire Amtrak.
Currently, the total transaction value of the acquisition will increase to US$16.3 billion.
Reuters stated that this acquisition is not only related to the U.S. presidential election, but may also have an impact on U.S.-Japan relations.
According to reports, Japanese Prime Minister Fumio Kishida plans to visit Washington on April 10, 2024.
Analysts believe that Biden's opposition to the Amtrak acquisition may "cast a shadow" on this meeting.
Currently, the Committee on Foreign Investment in the United States (CFIUS) is reviewing the above-mentioned transaction.
"CFIUS's review of this transaction attempts to politicize the target," said John Murphy, director of international affairs at the U.S. Chamber of Commerce. "(This) is inappropriate and will only be counterproductive."
Public information shows that U.S. Steel was founded in 1901 and has a history of 123 years. It is headquartered in Pittsburgh, Pennsylvania. It was formed by the merger of "Steel King" Carnegie's Carnegie Steel Company and United Steel Company. , was once the largest steel company in the United States, controlling 65% of U.S. steel production and annexing more than 50 companies.
In comparison, Nippon Steel is a relatively young company. It was officially established in 1970 and is located in Chiyoda District, Tokyo, Japan. It is the largest steel company in Japan. Its main factories are located in Junjin City, Chiba Prefecture, Tokai City, Aichi Prefecture, and Oita. Oita City, Prefecture, etc.
According to the "World Steel Statistics 2023" released by the World Steel Association, Nippon Steel's output in 2022 will be 44.37 million tons, ranking 4th; U.S. Steel's output will be 14.49 million tons, ranking 27th in the world.